The correct answer is: A. common stocks
Common stocks are the most basic form of ownership in a company. They represent a share of the company’s equity, and as such, they give the owner a claim on the company’s assets and earnings. Common stocks are more risky than corporate bonds because they are not guaranteed to pay a dividend, and their value can fluctuate more widely. However, they also offer the potential for higher returns.
Corporate bonds are debt securities issued by corporations. They represent a loan from the investor to the corporation, and as such, they are a more secure investment than common stocks. Corporate bonds typically pay a fixed interest rate, and the principal is repaid at maturity.
Leases are agreements between a lessor and a lessee. The lessor owns the asset, and the lessee agrees to pay rent in exchange for the right to use the asset. Leases can be classified as either operating leases or capital leases. Operating leases are treated as short-term expenses, while capital leases are treated as long-term assets.
Preferred stocks are a type of equity security that gives the holder a preference over common stockholders in the event of a liquidation. Preferred stocks also typically have a fixed dividend rate, which is paid out before any dividends are paid to common stockholders.
In conclusion, the correct answer is: A. common stocks.