Investor Glossary-inflation-indexed securityInvestor Glossary-inflation-indexed securityInvestor Glossary-inflation-indexed securityInvestor Glossary-inflation-indexed securityInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Inflation-indexed Security

The HTML to link to this page
 

An inflation-indexed security is a stock or bond whose return is promised to be higher than the rate of inflation. A company or government body will issue an inflation-indexed security (generally a bond) to attract investors who want their earnings to survive the corrosive effects of inflation. The US Treasury issues several types of inflation-indexed security, such as the Series I savings bond, whose interest rate is adjusted every six months against the prevailing rate of inflation. Other types of inflation-indexed security adjust the dollar value of the security's principal. At maturity, such a bond pays the higher of the inflation-indexed security principal or the original principal. An inflation-indexed security is popular among investors seeking to preserve their investment's value.



Rate this inflation-indexed security definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 401a, real GDP, inflation, command economy, in escrow, cancelled check, ex-dividend, 1035 exchange, required rate of return, Key Rate Duration, stock market close, margin rate, average price per share, current ratio, deferred tax, Zero Cost Collar, stock split, EBITDA, implied volatility, LIBOR, balance sheet, risk management, FTSE, deferred revenue, per diem, labor relations, retained earnings, debt service coverage, phantom income, ex-dividend date, liquidity ratio, FICO score, 1031 exchange, annual return, option premium, covered put, 144a, wholly-owned subsidiary, irrevocable trust, APR, reverse mortgage, minority interest, open position, VIX, quality assurance, class C shares, dividends payable, limit order, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use