Which of the following is NOT a type of bond?

Preferred stock is distinct from bonds as it represents an ownership stake in a company rather than a debt obligation. When investors purchase preferred stock, they are buying equity that typically provides dividends along with potential voting rights, depending on the class of stock. In contrast, bonds are loan agreements where the bondholder lends money to the issuer (such as a corporation or government) and receives periodic interest payments, as well as the return of the principal at maturity.

Corporate debt, municipal debt, and money market debt all fall under the category of bonds or debt instruments. Corporate debt refers to bonds issued by companies to raise capital. Municipal debt represents bonds issued by local or state governments to fund public projects. Money market debt consists of short-term debt instruments that are generally considered very low risk, such as Treasury bills and commercial paper. Each of these options functions primarily as a means of borrowing, distinguishing them clearly from preferred stock.