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. Implied Volatility - IV

    The estimated volatility of a security's price. In general, implied ...
  2. Effective Duration

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

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

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

    A financial ratio that shows how much a company pays out in dividends ...
  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

    What Would Happen If Interest Rates Rise?

    This time around, while U.S. long-term yields have rebounded from their January lows, rates have generally been lower than where they ended 2014.
  7. Investing

    Strategies To Position Your Bond Portfolio

    Fixed income investors may not be able to see them all right now, but important trends are stirring on the investment horizon.
  8. Economics

    Afraid Of A New Financial Crisis?

    It may be time for the U.S. to adopt a model for financial companies that better deters risky financial behavior.
  9. Savings

    How To Make Money With Airbnb: Risks & Rewards

    Airbnb lets you turn your home or spare room into extra cash. Here's how to make money and protect yourself from the risks.
  10. Mutual Funds & ETFs

    Consider This High-Yield ETF's Risks and Rewards

    Finding quality high-yield opportunities isn’t easy, but the YieldShares High Income ETF (YYY) has potential.

You May Also Like

Hot Definitions
  1. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  2. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  3. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  4. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  5. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center