Fixed base index

Definition:

For this type of index, the value in any specific time period is based on the value in the initial time period and this base remains unchanged throughout the index. This is different from a chain base index in which values in any period are based on the preceding time period. See: Base period, Chain base index, Index number

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Double-dip lease

A cross-border lease in which the different rules of the lessor's and lessee's countries let both parties be treated as the owner of the leased equipment for tax purposes.

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