|Normal annuity form|
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Definition of Normal annuity form
Normal annuity form
The manner in which retirement benefits are paid out.
Part of the return that is not due to systematic influences (market wide influences). In
the present value of a finite stream of cash flows for every beginning $1 of cash flow.
A regular periodic payment made by an insurance company to a policyholder for a specified period
A series of payments or deposits of equal size spaced evenly over
A series of payments over a period of time. The payments are usually
Equally spaced level stream of cash flows.
A 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.
Periodic payments made to an individual under the terms of the policy.
An annuity with n payments, wherein the first payment is made at time t = 0 and the last
annuity where the payments are to be made at the beginning of
a series of equal cash flows being received or paid at the beginning of a period
Level stream of cash flows starting immediately.
Present value of $1 paid for each of t periods.
Present value of an annuity of $1 per period.
An annuity with a first payment on full period hence, rather than immediately.
The time between each payment under an annuity.
Information that is known to some people but not to other people.
Back To Back Annuity
This 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 Committee
The 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
An annuity providing for income payments to commence at a specified future time.
Deferred nominal life annuity
A monthly fixed-dollar payment beginning at retirement age. It is nominal
A format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities.
Equivalent annual annuity
The equivalent amount per year for some number of years that has a present
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
Flat benefit formula
Method used to determine a participant's benefits in a defined benefit plan by
A form used by businesses to report to the government payments
A form used by employees to report to an employer the amount of
The standard form used for notifying a company to garnish an employee’s
The form used by employers to report tip income by their employees
A form used to report federal unemployment tax remittances and liabilities.
A shortened version of the form 940.
The Employment Eligibility Verification form, which must be filled
Formalized Line of Credit
A contractual commitment to make loans to a particular borrower up to a specified maximum during a specified period, usually one year.
A method of selling a new issue of common stock in which the SEC declares the registration
Future-Oriented Financial Information
Information 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 1986
A federal Act requiring all employers having at least four employees to verify the identity and employment
A format for the operating section of the cash-flow statement that
Individual Retirement Annuity
An IRA comprised of an annuity that is managed
bits of knowledge or fact that have been carefully
A 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
The rise in the stock price following the dividend signal.
information content of dividends
Dividend increases send good news about cash flow and earnings. Dividend cuts send bad news.
Transaction costs that include the assessment of the investment merits of a financial asset.
Trades in which an investor believes he or she possesses pertinent
Organizations that furnish investment and other types of information, such as
The speed and accuracy with which prices reflect new information.
Trades that are the result of either a reallocation of wealth or an implementation of an
Relevant information about a company that has not yet been made public. It is illegal for
A 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 form
a source document that indicates
Medical Information Bureau
This 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 spoilage
the cost of spoiled work less the estimated disposal value of that work
Any inventory item that does not match its original design
Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected
Normal (bell-shaped) distribution
In statistics, a theoretical frequency
the long-run (5–10 years) average production
normal cost system
a valuation method that uses actual
Related: standardized value
an expected decline in units during the production process
A customized benchmark that includes all the securities from which a manager normally
Normal probability distribution
A probability distribution for a continuous random variable that is forms a
Normal random variable
A random variable that has a normal probability distribution.
spoilage that has been planned or foreseen; is a product cost
The practice of making a charge in the income account equivalent to the tax savings
An annuity where the payments are made at the end of each
a series of equal cash flows being received
an entity’s legal nature (for example,
When a security is expected to appreciate at a rate faster than the overall market.
Performance attribution analysis
The decomposition of a money manager's performance results to explain
The evaluation of a manager's performance which involves, first, determining
the process of determining the degree
performance management system
a system reflecting the entire package of decisions regarding performance measurement and evaluation
The calculation of the return realized by a money manager over some time interval.
Shares of stock given to managers on the basis of performance as measured by earnings
Pro forma capital structure analysis
A method of analyzing the impact of alternative capital structure
Reported net income with selected nonrecurring items of revenue or gain
Pro forma financial statements
Financial 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 statement
A financial statement showing the forecast or projected operating results and balance
Projected 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 efficiency
A form of pricing efficiency where the price of the security fully reflects all
Market prices reflect all publicly available information.
Single-premium deferred annuity
An insurance policy bought by the sponsor of a pension plan for a single
Spoilage arising from the production process that exceeds the normal
The amount of spoilage that naturally arises as part of a production
Standardized normal distribution
A normal distribution with a mean of 0 and a standard deviation of 1.
Pricing efficiency, where the price of a, security reflects all information, whether or
Market prices rapidly reflect all information that could in principle be used to determine true value.
Tax Reform Act of 1986
A 1986 law involving a major overhaul of the U.S. tax code.
When a security is expected to appreciate at a slower rate than the overall market.
Uniform Interstate Family Support Act
A federal Act specifying which jurisdiction
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