Level annuity system

Definition:

A plan that pays interest and principal in such a way that the total is same for each payment. The earliest payments are mostly interest and the later ones are mostly principal.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Reverse conversion

A technique in which brokerage firms earn interest on the stocks they hold for their customers by selling the short and investing the proceeds in money market accounts. The short positions are hedged... Read More

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