Glossary

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Glossary

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There are 3 names in this directory beginning with the letter F.
Fixed Income (& Bond)
Fixed income is a type of security that pays its investors a fixed amount of coupon payment based on a predetermined interest rate. These coupon payments are usually paid semiannually or quarterly until maturity, which is when the initial principal amount is returned to investors.

Bonds are a type of fixed income securities because they pay investors fixed coupon payments until a bond’s maturity. Watch Video

 

Fixed Income Funds
Fixed-income funds, also known as bond funds, are funds that invest primarily in fixed-income securities. The most common types of fixed-income securities are US Treasuries, corporate bonds, municipal bonds. Watch Video

 

Fractional Shares
A partial ownership of a stock. All of the gains or losses of the fractional share are proportional to the gains and losses of a whole share. This is a new tool created by retail brokers to help investors afford shares of companies they can’t afford a whole share of, especially helpful in a time where companies no longer perform stock splits.