The type of corporate security that pays periodic interest as well as the eventual return of principal is:
A)Preferred stock
B)Debt Securities
C)Equity Securities
D)Fixed asset loans

Question

Quizplus · Accepted Answer

Debt securities, such as bonds or notes, are issued by corporations and pay periodic interest as well as the eventual return of the principal at maturity. Preferred stock may pay periodic dividends, but does not guarantee the return of the initial investment. Equity securities, such as common stock, do not offer periodic payments and do not guarantee the return of the initial investment. Fixed asset loans are a type of debt financing for specific projects or purchases and do not involve periodic interest payments.

The Type of Corporate Security That Pays Periodic Interest as Well