Encyclopedia of Investment Terminology

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Fixed Income

Fixed income generally refers to bonds, and occasionally preferred stocks. When it comes to investments an investment that has a fixed income will work with a fixed type of return. This involves receiving income from an investment at a regular rate. An example involves a government bond that a customer pays for and will be paid back in interest at a fixed rate once a month or during another type of consistent pays schedule. Despite the popular of fixed income investments this type of investment is one that risks losing value due to inflation.

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