In today's financial markets, the best example of a perpetuity is the common stock issued by firms.

Question

Quizplus · Accepted Answer

A perpetuity is a type of investment that pays a fixed amount of money regularly, without any maturity date. Common stock does not have a fixed amount of money paid regularly and there is no guarantee of a dividend payment. Therefore, common stock is not an example of a perpetuity. Examples of perpetuities include government bonds and preferred stock with fixed dividend payments.

In Today's Financial Markets, the Best Example of a Perpetuity