Fixed is a term used to describe something that has been made permanent or unchangeable. It can refer to physical objects, such as a fixed bridge, or intangible concepts, such as a fixed mindset. In the context of finance, fixed typically refers to an asset or liability that has a predetermined value or payment schedule. Fixed assets are those that are expected to remain in use for more than one year, while fixed liabilities are obligations that must be paid over a specific period of time. Understanding what fixed means and how it applies to different situations can help you make better financial decisions.
What Does Fixed Mean in the Context of Financial Markets?
In the context of financial markets, fixed refers to an asset or security that has a predetermined rate of return and is not subject to market fluctuations. Fixed assets are typically considered to be low-risk investments, as they provide a steady stream of income with minimal risk of loss. Examples of fixed assets include bonds, certificates of deposit (CDs), and annuities.