Stocks and bonds differ in that stocks pay fixed dividends, wheras bonds pay a variable amount of interest at regular intervals. bonds pay fixed dividends out of revenues, whereas stocks pay a variable amount of interest at regular intervals. stocks pay dividends out of profits, whereas bonds pay a predetermined amount of interest at regular intervals. bonds pay dividends out of profits, whereas stocks pay a predetermined amount of interest at regular intervals. b. Stocks are considered less risky than bonds, because companies need to have earnings to stay in business. more risky than bonds, because stock prices and profits are highly variable. almost risk-free, since companies need to have earnings to stay in business. less risky than bonds, because stock prices and profits are not highly variable. c. Which investment commonly goes by the name "fixed income"? Stocks Mutual funds Stocks and bonds Bonds

Bonds are commonly referred as fixed income financial instruments as the coupons ( cash payments are predetermined upon issuance of the bond to the public based on the bond issuance rate). Bonds are issued by corporate organisations and governments to raise funds to finance development or expansion as the case maybe. Stocks are variable and determined from profit realized by the company at the end of each financial year.