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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


1. Information on a security, company, or anything else provided by one investor or trader to another that is not available to the general public, that can produce significant profits if it proves to be accurate. See also: Inside information.

2. See: Gratuity.

Treasury Inflation-Protected Security

A U.S. Treasury security that protects the bondholder from inflation. Most Treasury securities, like most fixed dollar obligations, pay a fixed coupon rate periodically and mature at par. While this carries low risk, it exposes investors to the possibility that the inflation rate will outpace the interest rate represented on the coupon. In order to protect against this, a Treasury Inflation-Protected Security automatically increases its principal according to the inflation rate as tracked by the Consumer Price Index. Thus, while the coupon rate does not increase, the dollar amount paid does. Because TIPS are so safe, they offer a very low rate of return. See also: Real Return Bond.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Inflation-protected security (TIPS).

US Treasury inflation-protected securities (TIPS) adjust the principal twice a year to reflect inflation or deflation measured by the Consumer Price Index (CPI).

The interest rate is fixed and is paid twice a year on the adjusted principal. So if your principal is larger because of inflation you earn more interest. If it's lower because of deflation, you earn less.

You can buy TIPS with terms of 5, 10, or 20 years at issue using a Treasury Direct account or in the secondary market. At maturity you receive either the adjusted principal or par value, whichever is greater.

You owe federal income tax on the interest you earn and on inflation adjustments in each year they're added even though you don't receive the increases until the security matures. However, TIPS earnings are exempt from state and local income taxes.

These securities provide a safeguard against deflation as well as against inflation since they guarantee that you'll get back no less than par, or face value, at maturity.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Our cab driver, angry that we didn't tip him enough refused to help us decant the bags from the trunk.
Please feel free to contact Ovation Tips at 1-844-682-8477 for the app and dashboard demonstration.
He added: "We don't get high pay here but we have been relying so much on tips from customers to add to our salary."
Where it isn't included, a tip of ten to 15 per cent is adequate for restaurant staff and a smaller tip of [euro]1 to [euro]5 is okay when taking a taxi or paying for drinks.
Tim Rinkerman of Austin said the tips he gets between his two jobs at a coffee shop and a restaurant are vital.
How much did you tip the server the last time you had a good meal in a restaurant?
Also, tip-sharing seemed to be a bigger issue, as tipped employees were sharing their tips with non-tipped employees and those tipped employees didn't always feel that the sharing was voluntary.
Now with this guide for 9apps is just content tips and tricks for app ,Only Give you some information about 9apps Market only Information ,Finally this is perfect guide for beginner to use the app.
Karen says, 'I think tips should be given only with quality service, not because it's a culture or the feel of obligation.'
Arguably, those attitudes are less important than the opinions of the best prospective restaurant employees, namely, those who have worked for tips, and who are outgoing and social (extraverted), emotionally stable (non-neurotic), friendly and easy going (agreeable), and dutiful, punctual, and hard-working (conscientious).
And Jordan Lewis, Operations manager at Park Plaza Cardiff, said: "Everyone who works in our restaurant gets a share of the tips on a monthly basis, which is paid via their payslips.
The new system will distribute tips across the company's 430 UK restaurants.