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Investing > Face Amount Certificate Company
The following information is about Face Amount Certificate Company.
Face Amount Certificate Company Defined
One of three basic types of investment companies defined by the Investment Company Act of 1940. This kind of investment company issues debt certificates, called face amount certificates, at a predetermined rate of interest to investors. They 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: Face Amount Certificate; Investment Company; Investment Company Act Of 1940
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