Fixed-Income Security

Dictionary Says

Definition of 'Fixed-Income Security'

An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. Unlike a variable-income security, where payments change based on some underlying measure such as short-term interest rates, the payments of a fixed-income security are known in advance.
Investopedia Says

Investopedia explains 'Fixed-Income Security'

An example of a fixed-income security would be a 5% fixed-rate government bond where a $1,000 investment would result in an annual $50 payment until maturity when the investor would receive the $1,000 back. Generally, these types of assets offer a lower return on investment because they guarantee income.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Annuity

    A financial ...
  2. Bond

    A debt ...
  3. Coupon Bond

    A debt ...
  4. Fixed-Rate Capital Securities

    A security ...
  5. Guaranteed Investment (Interest) ...

    A deposit ...
  6. Pickup

    A gain in yield ...
  7. Trade Reporting And Compliance ...

    A program ...
  8. Bond Laddering

    A portfolio ...
  9. Fixed-Income Style Box

    Created by ...
  10. Currency Carry Trade

    A strategy in ...

Articles Of Interest

  1. Bond Portfolios Made Easy

    Bonds have typically been viewed as stocks' less-glamorous sidekick, but they deserve a little more respect from investors.
  2. The Money Market

    If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
  3. Teaching Your Child To Be Financially Savvy

    If you start today, you can set your kids up for a lifetime of smart money management.
  4. Retail Notes: A Simpler Alternative To Bond Funds

    These securities are meant to be held until maturity, removing the burden of complex pricing that sometimes plagues bonds.
  5. Understanding The Mutual Fund Style Box

    Evaluate your investments with this simple tool.
  6. Agency Bonds: Limited Risk And Higher Return

    Discover these safe alternatives to Treasury bonds.
  7. Mutual Funds: Different Types Of Funds

    Find the fund to fit your investing style.
  8. A Brief History Of Credit Rating Agencies

    Credit rating agencies have a long history in this country. Learn about what they do and how were they developed.
  9. Retiring On Investment Interest: Can It Be Done?

    Spending investment interest in retirement can be a viable strategy, but it won't work for everyone.
  10. RV Travelers: A Niche Market For Advisors

    RV travelers can provide an interesting challenge for advisors.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center