What does face-amount certificate company mean?
Definitions for face-amount certificate company
face-amoun·t cer·tifi·cate com·pa·ny
This dictionary definitions page includes all the possible meanings, example usage and translations of the word face-amount certificate company.
Princeton's WordNet
face-amount certificate companynoun
a regulated investment company that pays a stated amount to certificate holders on a stated maturity date
Wikipedia
Face-amount certificate company
A face-amount certificate company is an investment company which offers an investment certificate as defined by the United States Investment Company Act of 1940. In general, these companies issue fixed income debt securities that obligate the issuer to pay a fixed sum at a future date. They are generally sold on an installment basis.A face-amount certificate (FAC) is a contract between an investor and an issuer in which the issuer guarantees payment of a stated (face amount) 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 and SBM Financial Group. Along with FAC, other company types that fall under the scope of the Investment Company Act of 1940 are Unit Investment Trusts and Management Companies.
ChatGPT
face-amount certificate company
A face-amount certificate company is a type of investment firm that issues debt securities to its investors, known as face-amount certificates. These securities commit the company to pay the investor a fixed return (the face amount) at a specified maturity date. The investors typically make periodic payments to the company, and in exchange, the company guarantees to pay a set amount at a future date. This type of company is regulated under the Investment Company Act of 1940 in the United States.
Wikidata
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.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of face-amount certificate company in Chaldean Numerology is: 2
Pythagorean Numerology
The numerical value of face-amount certificate company in Pythagorean Numerology is: 6
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"face-amount certificate company." Definitions.net. STANDS4 LLC, 2024. Web. 23 Apr. 2024. <https://www.definitions.net/definition/face-amount+certificate+company>.
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