Definitions for face-amount certificate company
This page provides all possible meanings and translations of the word face-amount certificate company
face-amount certificate company(noun)
a regulated investment company that pays a stated amount to certificate holders on a stated maturity date
Face-amount certificate company
A face-amount certificate company is an investment company which offers an investment certificate as defined by the Investment Company Act of 1940. A face-amount certificate is a contract between an investor and an issuer in which the issuer guarantees payment of a stated sum to the investor at some set date in the future. In return for this future payment, the investor agrees to pay the issuer a set amount of money either as a lump sum or in periodic installments. If the investor pays for the certificate in a lump sum, the investment is known as a fully paid face amount certificate. Issuers of these investments are face-amount certificate companies. Very few face-amount certificate companies operate today because tax law changes have eliminated their tax advantages. The most notable financial services companies in the face-amount certificate business today are Ameriprise Financial, Inc and SBM Financial Group. Alongside with FAC, other company types that fall under the scope of the Investment Company Act of 1940 are Unit Investment Trusts and Management Companies.
Find a translation for the face-amount certificate company definition in other languages:
Select another language:
Discuss these face-amount certificate company definitions with the community:
Use the citation below to add this definition to your bibliography:
"face-amount certificate company." Definitions.net. STANDS4 LLC, 2014. Web. 8 Mar. 2014. <http://www.definitions.net/definition/face-amount certificate company>.