face-amount certificate

face-amount certificate definition - finance
A debt instrument issued by a type of mutual fund that is called a face-amount certificate company. An investor who owns a face-amount certificate makes periodic payments to the company issuing the certificate. At the end of the payment period, the issuer pays the investor the face value of the certificate. If the certificate is presented before maturity, the investor is paid the surrender value.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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