Non-Fluctuating

AAA

DEFINITION of 'Non-Fluctuating'

The characteristic of constancy in a security or measurement's value, rate of change or other metric. Non-fluctuating is a feature of a fixed-rate asset which has a constant yield, such as a government-issued debenture (which, however, the market price of the debenture will fluctuate as interest rates change.) A non-fluctuating characteristic is the opposite of a volatile characteristic where changes in value do occur. An investment that has non-fluctuating returns with little risk tends to have lower returns than investments that are exposed to volatility.

INVESTOPEDIA EXPLAINS 'Non-Fluctuating'

In contrast, common stock of a public corporation is more likely to fluctuate in both dividend yield and market price. Dividends paid on preferred stock are non-fluctuating; that is, they are paid at a fixed rate. Dividends paid on common stock, on the other hand, can fluctuate, though some secure and stable companies, such as blue chips, may offer steady dividends. Other non-fluctuating investments include money market funds (which are similar to savings accounts), savings accounts and certificates of deposit.

RELATED TERMS
  1. Effective Duration

    A duration calculation for bonds with embedded options. Effective ...
  2. Volatility

    1. A statistical measure of the dispersion of returns for a given ...
  3. Historical Volatility - HV

    The realized volatility of a financial instrument over a given ...
  4. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends ...
  5. Implied Volatility - IV

    The estimated volatility of a security's price. In general, implied ...
  6. Beta

    A measure of the volatility, or systematic risk, of a security ...
Related Articles
  1. Markets

    The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  2. Economics

    Forces Behind Interest Rates

    Get a deeper understanding of the importance of interest rates and what makes them change.
  3. Investing Basics

    Beta: Gauging Price Fluctuations

    Learn how to properly use this measure that can help you meet your criteria for risk.
  4. Options & Futures

    Volatility's Impact On Market Returns

    Find out how to adjust your portfolio when the market fluctuates to increase your potential return.
  5. Mutual Funds & ETFs

    Understanding Volatility Measurements

    How do you choose a fund with an optimal risk-reward combination? We teach you about standard deviation, beta and more!
  6. Economics

    Where do funds report their r-squared?

    Learn where to find R-squared calculations for mutual funds. Explore R-squared, Alpha and Beta and how these calculations measure securities' performance.
  7. Mutual Funds & ETFs

    How much of my total assets should I be keeping in my money market account?

    Investing a portion of total assets in a cash position such as a money market account provides investors access to funds in the case of an emergency.
  8. Bonds & Fixed Income

    How does preferred stock differ from company issued bonds?

    Discover the primary differences between preferred stock and corporate bonds, two income-generating investment vehicles issued by certain companies.
  9. Fundamental Analysis

    How do you calculate r-squared in Excel?

    Calculate R-squared in Microsoft Excel by creating two data ranges to correlate. Use the Correlate formula to correlate both sets of data, or x and y.
  10. Bonds & Fixed Income

    What is the difference between yield to maturity and the yield to call?

    Determining various the various yields that callable bonds can provide investors is an important factor in the bond purchasing process.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center