Another term for stocks and bonds is:

The correct answer, "Equity and debt," accurately describes the fundamental categorization of stock and bond investments. Stocks represent ownership in a company and are categorized as equity because they provide shareholders with a claim on the company's assets and earnings. In contrast, bonds are a form of debt; when an investor purchases a bond, they are lending money to the issuer (such as a corporation or government) in exchange for periodic interest payments and the return of the bond's face value at maturity.

This distinction is crucial in understanding how different investments function within the financial markets. Equity represents ownership, which can lead to capital gains as the company grows and profits, while debt typically involves fixed returns and can provide more security to investors, as bondholders are prioritized over equity holders in case of liquidation.

The other options do not represent the correct terminology for stocks and bonds. "Shares and units" refer to different ways of measuring ownership in specific contexts but do not encompass the broader definition of equity and debt. "Taxable and tax-free" relates to the tax implications of certain investments rather than their classification as stocks or bonds. "Voting and nonvoting" pertains to the rights associated with different types of equity shares but doesn’t accurately describe both stocks and bonds as financial