Skip to main content
Stocks

Floating Rate Security

A floating rate security is one whose interest rate or dividend is influenced by specific market indicators. These rates are often tied to an administered rate, such as the prime rate. This means that as the administered rate changes, so does the interest or dividend of the security. This can provide investors with a potential advantage, as they may be able to earn higher returns when market indicators are favorable. However, it also introduces a level of risk, as these rates can fluctuate and potentially decrease the returns on the investment.

Related terms

Cum Rights

Understand the meaning and definition of Cum Rights in the context of stock market, trading, and investments.

MORE
Profit Margin

Understand the meaning and definition of Profit Margin in the context of stock market, trading, and investments.

MORE
Leveraged Buy Out

Understand the meaning and definition of Leveraged Buy Out in the context of stock market, trading, and investments.

MORE
Shares outstanding

Understand the meaning and definition of Shares outstanding in the context of stock market, trading, and investments.

MORE
Net Change

Understand the meaning and definition of Net Change in the context of stock market, trading, and investments.

MORE
Convertible Bond

Understand the meaning and definition of Convertible Bond in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.5 Cr+ happy customers
+91