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Investing > Face Amount Certificate

The following information is about Face Amount Certificate.

Face Amount Certificate Defined

A debt instrument issued by a face amount certificate company, which is a type of investment company. Face amount certificates offer a predetermined rate of interest and may be purchased in lump-sums, or more commonly, in periodic installments. Certificate holders are entitled to redeem their certificates at maturity for the face amount, or they may redeem them prior to maturity for their surrender value.

See Also: Debt Instrument; Face Amount Certificate Company; Investment Company

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