Fixed-Income Investment

Business / Taxes / Fixed-Income Investment: Fixed-income investments typically pay interest or dividends on a regular schedule and may promise to return your principal at maturity, though that promise is not guaranteed in most cases. Among the examples are government, corporate, and municipal bonds, preferred stock, and guaranteed investment contracts (GICs). The advantage of holding fixed-income securities in an investment portfolio is that they provide regular, predictable income. But a potential disadvantage of holding them over an extended period, or to maturity in the case of bonds, is that they may not increase in value the way equity investments may. As a result, a portfolio overweighted with fixed-income investments may make you more vulnerable to inflation risk.

Reinvestment Risk

Business / Finance / Reinvestment Risk: The risk that proceeds received in the future may have to be reinvested at a lower potential interest rate. MORE

Normal Investment Practice

Business / Finance / Normal Investment Practice: The investment history of a customer, which is used as a benchmark to test the bona fide public offerings requirement of the allocation of a hot issue. MORE

Net Present Value Of Future Investments

Business / Finance / Net Present Value Of Future Investments: The present value of the total sum of NPVs expected to result from all of the firm's future investments. MORE

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