A type of investing or budgeting style for which real return rates or periodic income is received at regular intervals at reasonably predictable levels. Fixed-income budgeters and investors are often one and the same - typically retired individuals who rely on their investments to provide a regular, stable income stream. This demographic tends to invest heavily in fixed-income investments because of the reliable returns they offer. |||Individuals who live on set amounts of periodically paid income face the risk that inflation will erode their spending power. Fixed-income investors receive set, regular payments that face the same inflation risk.The most common type of fixed-income security is the bond; bonds are issued by federal governments, local municipalities or major corporations.
An exchange-traded fund (ETF) that a broker does not charge a commission or fee to be traded. Most ETFs require an investor to pay each time a buy or sell order is executed, which increases the cost associated with placing frequent trades. A no-fee ETF is used as an incentive to get an investor to move his or her account to a particular broker, with the broker forgoing a transaction fee in order to gain access to the investor's assets. This in turn allows the broker to provide other financial product and services to the investor. Watch: 4 Reasons To Invest In ETFs Taobiz explains No-Fee ETF No-fee ETFs are a relatively new category of investment, as ETFs typically carry a per-trade fee. Unlike mutual funds, which are typically traded much less frequently because their value is calculated at the end of the day and because of higher transaction costs, ETFs were seen as investments that could be traded just as a share of stock because their value is updated continuously.
An agency that deals with the /confirm/iation, settlement and delivery of fixed-income assets in the U.S. The agency ensures the systematic and efficient settlement of U.S. Government securities and mortgage-backed security transactions in the market. |||The FICC started operations at the start of 2003 and was created when the Government Securities Clearing Corporation and the Mortgage-Backed Security Clearing Corporation merged. The clearing corporation is divided into two sections: the government securities division and the mortgage-backed securities division.
A type of preferred stock that does not pay the holder any unpaid or omitted dividends. If the corporation chooses to not pay dividends in a given year, the investor does not have the right to claim any of those forgone dividends in the future. Taobiz explains Noncumulative In the case that preferred shares are cumulative, holders are entitled to any missed or omitted dividends. For example, let's assume that ABC Company chooses to not pay its $1.10 annual dividend to its cumulative preferred stockholders. In this case, these shareholders do not receive the dividend this year, but they are entitled to collect this dividend at some point in the future. If the preferred shares mentioned above were noncumulative, the shareholders would never receive the missed dividend of $1.10. The example above illustrates why a cumulative preferred share is worth more than a noncumulative preferred share.
An offer issued by a corporation to shareholders to purchase more shares of the corporation (usually at a discount). Unlike a renounceable right, a non-renounceable right is not transferable, and therefore cannot be bought or sold. Taobiz explains Non-Renounceable Rights Issuing more shares dilutes the value of outstanding stock. But because the rights issue allows the existing shareholders to buy the newly issued stock at a discount, they are compensated for the impending share dilution - the compensation the rights issue gives them is equivalent to the cost of share dilution. However, shareholders who do not take exercise the rights by buying the discounted stock will lose money as their existing holdings will suffer from the dilution.
A note that carries a fixed (as opposed to floating) charge against the issuer’s property or assets for repayment. The charge will remain on the company’s records until the debenture is repaid. Corporations can issue fixed debentures to finance operations in the same way they issue stock. Fixed debentures can be issued singly or in a series. They pay out a fixed rate of interest at regular intervals. |||Fixed charge debentures require restrictions on the underlying property or asset backing the loan to ensure the lenders' security. For example, a company may issue a fixed debenture to obtain a mortgage; the mortgage would most likely preclude the borrower (company) from subletting the mortgaged property to a third party.
A type of employee stock option where you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option. Taobiz explains Non-Qualified Stock Option - NSO NSOs are simpler and more common than incentive stock options (ISOs). They're called non-qualified stock options because they don't meet all of the requirements of the Internal Revenue Code to be qualified as ISOs.
Measures all common stocks listed on the New York Stock Exchange and four subgroup indexes: industrial, transportation, utility and finance. The index tracks the change in the market value of NYSE common stocks, and is adjusted to eliminate the effects of new listings and delistings. The market value of each stock is calculated by multiplying its price per share by the number of shares listed. Taobiz explains NYSE Composite Index The NYSE composite is a fairly good indicator of general market strength.