The answer is number 3. Hope it helps! :)
It’s common stock
Common stock is an asset that gives ownership to shareholders of an organization but it does not give the holders priority in the ownership of the company. If the organization files bankruptcy, common stockholders are paid after, preferred stockholders, bondholders, and debtholders, making the security to be riskier. Besides, stocks are more volatile assets since they tend to react fast to the movements of the overall market.
The book is better if you want more detailed information
