fixed-income security

Fixed-Income Security

A security with a guaranteed return. Common examples include bonds, which pay periodic coupons representing a certain interest rate, and preferred stocks, which are legally required to receive a specified dividend at certain times. Typically, fixed-income securities offer lower risk and lower returns than common stock and similar investment vehicles.

fixed-income security

A security, such as a bond or preferred stock, that pays a constant income each period. Price changes in a fixed-income security are caused primarily by changes in long-term interest rates.
References in periodicals archive ?
Duration also incorporates both changing market values and changing returns from the reinvestment of cash to provide a better measure of the return an investor will earn on a fixed-income security.
Purchasing a fixed-income security with a maturity that matches the date when funds are required to meet a specific need can produce a return that is higher or lower than expected because of a changing return that will be earned on the reinvestment of cash payments prior to maturity.

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