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Normal annuity form |
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Definition of Normal annuity formNormal annuity formThe manner in which retirement benefits are paid out.
Related Terms:Abnormal returnsPart of the return that is not due to systematic influences (market wide influences). In ADF (annuity discount factor)the present value of a finite stream of cash flows for every beginning $1 of cash flow. AnnuityA regular periodic payment made by an insurance company to a policyholder for a specified period AnnuityA series of payments or deposits of equal size spaced evenly over AnnuityA series of payments over a period of time. The payments are usually annuityEqually spaced level stream of cash flows. AnnuityA contract which provides an income for a specified period of time, such as a certain number of years or for life. An annuity is like a life insurance policy in reverse. The purchaser gives the life insurance company a lump sum of money and the life insurance company pays the purchaser a regular income, usually monthly. ![]() AnnuityPeriodic payments made to an individual under the terms of the policy. Annuity dueAn annuity with n payments, wherein the first payment is made at time t = 0 and the last Annuity Dueannuity where the payments are to be made at the beginning of annuity duea series of equal cash flows being received or paid at the beginning of a period annuity dueLevel stream of cash flows starting immediately. Annuity factorPresent value of $1 paid for each of t periods. annuity factorPresent value of an annuity of $1 per period. Annuity in arrearsAn annuity with a first payment on full period hence, rather than immediately. Annuity PeriodThe time between each payment under an annuity. Asymmetric informationInformation that is known to some people but not to other people. Back To Back AnnuityThis term refers to the simultaneous issue of a life annuity with a non-guaranteed period and a guaranteed life insurance policy [usually whole life or term to 100]. The face value of the life insurance would be the same amount that was used to purchase the annuity. This combination of life annuity providing the highest payout of all types of annuities, along with a guaranteed life insurance policy allowed an uninsurable person to convert his/her RRSP into the best choice of annuity and guarantee that upon his/her death, the full value of the annuity would be paid tax free through the life insurance policy to his family members. However, in the early 1990's, the Federal tax authorities put a stop to the issuing of standard life rates to rated or uninsurable applicants. Insuring a life annuity in this manner is still an excellent way to provide guaranteed tax free funds to family members but the application for the annuity and the application for the life insurance are separate transactions and today, most likely conducted through two different insurance companies so that there is no suspicion of preferential treatment given to the life insurance application. BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in CARs (cumulative abnormal returns)a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock. Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s Performance Presentation Standards Implementation Cumulative abnormal return (CAR)Sum of the differences between the expected return on a stock and the Deferred AnnuityAn annuity providing for income payments to commence at a specified future time. Deferred nominal life annuityA monthly fixed-dollar payment beginning at retirement age. It is nominal Direct-Method FormatA format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities. Equivalent annual annuityThe equivalent amount per year for some number of years that has a present Expected value of perfect informationThe expected value if the future uncertain outcomes could be known Flat benefit formulaMethod used to determine a participant's benefits in a defined benefit plan by Form 1099A form used by businesses to report to the government payments Form 4070A form used by employees to report to an employer the amount of Form 668-WThe standard form used for notifying a company to garnish an employee’s Form 8027The form used by employers to report tip income by their employees Form 940A form used to report federal unemployment tax remittances and liabilities. Form 940-EZA shortened version of the form 940. Form I-9The Employment Eligibility Verification form, which must be filled Formalized Line of CreditA contractual commitment to make loans to a particular borrower up to a specified maximum during a specified period, usually one year. Formula basisA method of selling a new issue of common stock in which the SEC declares the registration Future-Oriented Financial InformationInformation about prospective results of operations, financial position and/or changes in financial position, based on assumptions about future economic conditions and courses of action. Future-oriented financial information is presented as either a forecast or a projection. Guaranteed Interest Annuity (GIA)Interest bearing investment with fixed rate and term. Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA)A federal Act shielding employers from liability if they have made Immigration Reform and Control Act of 1986A federal Act requiring all employers having at least four employees to verify the identity and employment Indirect-Method FormatA format for the operating section of the cash-flow statement that Individual Retirement AnnuityAn IRA comprised of an annuity that is managed informationbits of knowledge or fact that have been carefully Information asymmetryA situation involving information that is known to some, but not all, participants. Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to Information-content effectThe rise in the stock price following the dividend signal. information content of dividendsDividend increases send good news about cash flow and earnings. Dividend cuts send bad news. Information costsTransaction costs that include the assessment of the investment merits of a financial asset. Information-motivated tradesTrades in which an investor believes he or she possesses pertinent Information servicesOrganizations that furnish investment and other types of information, such as Informational efficiencyThe speed and accuracy with which prices reflect new information. Informationless tradesTrades that are the result of either a reallocation of wealth or an implementation of an Insider informationRelevant information about a company that has not yet been made public. It is illegal for Lognormal distributionA distribution where the logarithm of the variable follows a normal distribution. management information system (MIS)a structure of interrelated elements that collects, organizes, and communicates material requisition forma source document that indicates Medical Information BureauThis organization was established in 1902. The Medical Information Bureau (M.I.B.) is a non-profit association of life insurance companies. Its purpose is to detect and deter fraud by providing warnings called, alerts, to member companies. For example, if an insurance applicant advised one insurance company of a heart attack and then applied to another insurance company omitting this history, codes, reported by the first insurance company, indicating a heart attack would alert the second insurance company to the undisclosed history. It is a rarity, however, that the alert is the only notice of a specific medical impairement as most applicants completely disclose their history. net cost of normal spoilagethe cost of spoiled work less the estimated disposal value of that work Nonconforming materialAny inventory item that does not match its original design Normal backwardation theoryHolds that the futures price will be bid down to a level below the expected Normal (bell-shaped) distributionIn statistics, a theoretical frequency normal capacitythe long-run (5–10 years) average production normal cost systema valuation method that uses actual Normal deviateRelated: standardized value normal lossan expected decline in units during the production process Normal portfolioA customized benchmark that includes all the securities from which a manager normally Normal probability distributionA probability distribution for a continuous random variable that is forms a Normal random variableA random variable that has a normal probability distribution. normal spoilagespoilage that has been planned or foreseen; is a product cost Normalizing methodThe practice of making a charge in the income account equivalent to the tax savings Ordinary AnnuityAn annuity where the payments are made at the end of each ordinary annuitya series of equal cash flows being received organizational forman entity’s legal nature (for example, OverperformWhen a security is expected to appreciate at a rate faster than the overall market. Performance attribution analysisThe decomposition of a money manager's performance results to explain Performance evaluationThe evaluation of a manager's performance which involves, first, determining performance evaluationthe process of determining the degree performance management systema system reflecting the entire package of decisions regarding performance measurement and evaluation Performance measurementThe calculation of the return realized by a money manager over some time interval. Performance sharesShares of stock given to managers on the basis of performance as measured by earnings Pro forma capital structure analysisA method of analyzing the impact of alternative capital structure Pro-Forma EarningsReported net income with selected nonrecurring items of revenue or gain Pro forma financial statementsFinancial statements as adjusted to reflect a projected or planned transaction. Pro forma (Proforma)A set of financial statements that incorporates some assumptions, usually Pro forma statementA financial statement showing the forecast or projected operating results and balance pro formasProjected or forecasted financial statements. RAMs (Reverse-annuity mortgages)Mortgages in which the bank makes a loan for an amount equal to a Semi-strong form efficiencyA form of pricing efficiency where the price of the security fully reflects all semi-strong-form efficiencyMarket prices reflect all publicly available information. Single-premium deferred annuityAn insurance policy bought by the sponsor of a pension plan for a single Spoilage, abnormalSpoilage arising from the production process that exceeds the normal Spoilage, normalThe amount of spoilage that naturally arises as part of a production Standardized normal distributionA normal distribution with a mean of 0 and a standard deviation of 1. Strong-form efficiencyPricing efficiency, where the price of a, security reflects all information, whether or strong-form efficiencyMarket prices rapidly reflect all information that could in principle be used to determine true value. Tax Reform Act of 1986A 1986 law involving a major overhaul of the U.S. tax code. UnderperformWhen a security is expected to appreciate at a slower rate than the overall market. Uniform Interstate Family Support ActA federal Act specifying which jurisdiction Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |