fixed-income securities
Fixed income securities are financial instruments that provide investors with regular, predetermined payments over time. Common examples include bonds and treasury bills. When you buy a fixed income security, you are essentially lending money to an issuer, such as a government or corporation, which agrees to pay you back the principal amount at a specific date and make interest payments at regular intervals. These securities are generally considered lower-risk investments compared to stocks, making them popular for generating steady income and preserving capital, especially for those nearing retirement or seeking stability in their investment portfolio.
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Fixed-income securities are financial instruments that provide regular, fixed returns over time. When you buy a bond, for example, you are essentially lending money to an issuer, like a corporation or government, in exchange for periodic interest payments and the return of your principal at maturity. These securities are considered lower risk than stocks because their payments are predetermined and generally less volatile. Investors often use them to generate steady income, preserve capital, and diversify their portfolios. Examples include government bonds, corporate bonds, and municipal bonds.