Which tax applies to assets such as stocks and bonds?

The correct answer is the tax on intangibles, which applies specifically to assets that are not physical in nature, such as stocks and bonds. Intangibles tax targets assets that derive their value from intellectual or legal rights, financial instruments, and various forms of intangible property rather than real estate or tangible personal property.

In the context of the governmental environment, it's important to understand that different types of taxes are applied based on the nature of the asset. While capital gains tax is also relevant as it applies to the profit made from selling assets like stocks and bonds, it is not a direct tax on the assets themselves. Instead, it taxes the increased value realized at the time of sale.

Therefore, intangibles tax is correctly associated with the ownership or holding of stocks and bonds, distinguishing it as the appropriate classification for this scenario.