The term is associated with securities like bonds which historically have paid a predetermined and equal amount of interest on certain dates with the principal paid upon maturity . Today fixed income refers to investments in which have promised but not necessarily equal interest and principal payments. These include notes, bonds, and mortgage-backed securities with both fixed and variable payments. Index A group of securities designed to represent a market or market segment. For example, the Dow Jones Industrial Average is comprised of 30 stocks designed to represent the overall market, specifically large companies.
Indexing is a passive strategy in which the investor tries to replicate an index.
Inflation A rise in prices. Inflation is the rate of change in prices. Issuer Refers to the entity which issued a security. Usually used with respect to a bond to denote who is responsible for paying the interest and principal. The time at which the principal is due on a bond .