FACE-AMOUNT CERTIFICATE Definition

Bookmark and Share

FACE-AMOUNT CERTIFICATE is a debt security issued by face amount. The holder makes payments periodically to the issues, and the issuer promises to pay the purchaser the face value at maturity or the surrendered value if the security is presented by the maturity specified in the certificate.

Learn new Accounting Terms

LADDER is a form of diversification in which investments with widely varying maturities are held within an invest­ment portfolio. Spreading investments over a range of maturities reduces interest rate risk on reinvestment by averaging out interest rate cycles. This strategy assures a continuous cash flow over time with some potential sacrifice of optimum total return.

LYONs is Liquid-Yield Option Notes; zero-coupon convertivle bonds.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.