What is a common feature of fixed-income securities?

Fixed-income securities are characterized by their ability to provide returns in the form of fixed periodic payments. This means that investors receive regular interest payments, known as coupon payments, at predetermined intervals, as well as the return of the principal amount at maturity. This feature makes fixed-income securities attractive to investors seeking predictable income streams and less volatility compared to equities.

The regularity and predictability of these payments are what distinguish fixed-income investments from other asset classes, such as stocks, where returns are not guaranteed and may vary significantly.

Options that mention the ease of buying and selling, the risk level being high, or the limitation to only corporate issuances do not accurately reflect the fundamental nature of fixed-income securities. While some fixed-income securities can be easily traded and may carry different risk profiles, these are not defining characteristics of the entire category. Fixed-income securities can also be issued by governments and municipalities, not just corporations.