PARTICIPATING POLICY
These are often life insurance contracts in which the dividends received by the holder can be used in various ways:
- The policy holder may apply the proceeds of dividend to the insurance’s premium payment.
- The dividend may be kept with the insurance as a deposit to generate interest like in a bank’s savings account.
- The holder may get the dividend payment in cash, like a stock’s dividend payment.
POPULAR TERMS
Capital Commitment
Future capital payments that a firm has pledged to pay out on long-term assets over a particular time period. This also talks about the securities ...
Overwithholding
A term which refers to an excess amount of tax being withheld for an employee. It will be sent back as a refund to the taxpayer after he or she fil ...
Diluted Earnings Per Share - Diluted EPS
It is the measure of a company’s profits.
Covenant
Promise a firm made to an indenture or other formal debt agreement, stating some activities will or won’t be carried out. In finance, it freq ...
Gross Spread
Difference between the security price paid by the underwriter and the actual price charged to the public. The spread compensates the underwriters o ...
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