What Is a Face-Amount Certificate?
A denomination securities company is an investment company that pays a fixed amount to its securities holders on a prescribed maturity date. It requires the holder to pay a certain amount of money regularly within 10-20 years. The purchaser of denominated securities receives compound interest on their investment, but the interest rate is low because the maturity guarantee makes the company's investment conservative. Denomination securities are similar to term life insurance policies, and their interest rates are lower than those of savings banks and savings bonds. [1]
Denomination securities company
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- Chinese name
- Denomination securities company
- Definition
- A type of American investment company
- Qualification
- Pay a certain amount of money regularly within 10-20 years
- Classification
- economic
- A denomination securities company is an investment company that pays a fixed amount to its securities holders on a prescribed maturity date. It requires the holder to pay a certain amount of money regularly within 10-20 years. The purchaser of denominated securities receives compound interest on their investment, but the interest rate is low because the maturity guarantee makes the company's investment conservative. Denomination securities are similar to term life insurance policies, and their interest rates are lower than those of savings banks and savings bonds. [1]
- Company Content
- A type of American investment company. The company issues a certain denomination certificate or debt securities, and the investor who has obtained the denomination certificate enters into a contract with the company to pay the amount recorded in the denomination certificate. The company will pay the investor the principal and A certain amount of investment income. It requires the holder to pay a certain amount of money regularly within 10-20 years. The purchaser of denominated securities receives compound interest on their investment, but the interest rate is low because the maturity guarantee makes the company's investment conservative. Denomination securities are similar to term life insurance policies, and their interest rates are lower than those of savings banks and savings bonds. It stipulates that if the holder pays all the money, the company will pay him the prescribed amount or the refund price before the security expires [2]