Non-Fluctuating

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.

BREAKING DOWN '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. Debenture

    A type of debt instrument that is not secured by physical assets ...
  2. Compulsory Convertible Debenture ...

    A type of debenture in which the whole value of the debenture ...
  3. Convertible Debenture

    A type of loan issued by a company that can be converted into ...
  4. Debenture Redemption Reserve

    A provision that was added to the Indian Companies Act of 1956 ...
  5. Fixed Debenture

    A note that carries a fixed (as opposed to floating) charge against ...
  6. Partially Convertible Debenture ...

    A type of convertible debenture, part of which will be redeemed ...
Related Articles
  1. Markets

    Comparing Debentures And Bonds

    Debentures and bonds are debt instruments that companies issue to raise capital beyond their normal cash flows.
  2. Investing

    How Does a Convertible Debenture Work?

    A convertible debenture is an interest-bearing loan a company issues that can be turned into stock.
  3. Managing Wealth

    The Wonders Of Convertible Bonds

    Ever wondered what exactly a convertible bond does? Read the features of a convertible bond and learn how important the conversion factor is to you as an investor.
  4. Markets

    Debentures

    Learn more about this type of debt instrument.
  5. Markets

    Dividend Yield For The Downturn

    High-dividend stocks make excellent bear market investments, but the payouts aren't a sure thing.
  6. Managing Wealth

    How Will Your Investment Make Money?

    Discover the basic types of investment income and which asset classes pay them.
  7. Markets

    4 Things That Make a Stock a Safe Bet

    No investment is a sure bet, but you can reduce your chances of taking a loss by choosing fair-priced stocks with growth potential and low volatility.
  8. Managing Wealth

    The Risks of Chasing High Dividend Stocks

    Dividend stocks offer enticing yields, but a lot can go wrong on the way to collecting that dividend payout.
  9. Investing

    High Dividend Stocks: 3 Things to Consider Before Buying

    Discover some of the risks involved in investing in high-yield stocks, and learn about some of the factors that you should consider before investing.
  10. Investing

    Valuation Of A Preferred Stock

    Determining the value of a preferred stock is important for your portfolio. Learn how it's done.
RELATED FAQS
  1. How is a debenture stock different from a regular debenture?

    Learn to differentiate between standard debentures and debenture stocks, which are equities that act more like preferred ... Read Answer >>
  2. How risky is it to enter into a debenture agreement?

    Understand the nature of debenture agreements and the inherent risks and clauses that may provide additional protection for ... Read Answer >>
  3. What is the difference between nonconvertible debentures and fixed deposits?

    Debentures and fixed deposits are two different ways of investing money. A debenture is an unsecured bond. Essentially, it ... Read Answer >>
  4. What are the differences between preference shares and debentures?

    Learn why preference shares are equity securities and debentures are debt securities. Understand the differences between ... Read Answer >>
  5. What is the difference between a debenture and a bond?

    Learn how to differentiate between debentures and bonds, two types of debt securities that can be issued by a government ... Read Answer >>
  6. What legal recourse do I have if the counterparty in a debenture agreement does not ...

    Understand the risks and benefits of debenture agreements, and what legal recourse you have should the other party fail to ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center