What Is a Face-Amount Certificate Company? A face-amount certificate company is a type of corporation that raises money by issuing investors debt securities of a specified value. These instruments, called face-amount certificates (FACs), are backed by a security interest. In other words, the company offers up its assets such as the real property it owns or
What Were Facebook Credits? Facebook credits were virtual and could be used to buy goods in online games through the social networking platform, Facebook. Facebook credits were available for purchase online using a credit card, PayPal account, mobile phone, or various other payment methods, as well as offline at various retailer locations. The credits were
What Is Face Value? Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the holder at maturity
What Is a Facility? A facility is a formal financial assistance program offered by a lending institution to help a company that requires operating capital. Types of facilities include overdraft services, deferred payment plans, lines of credit (LOC), revolving credit, term loans, letters of credit, and swingline loans. A facility is essentially another name for
What Is the Fair and Accurate Credit Transactions Act (FACTA)? The Fair and Accurate Credit Transactions Act (FACTA) is a federal law enacted by the United States Congress in 2003. Its stated purpose was to enhance consumer protections, particularly in relation to identity theft. The most well-known feature of the Act is that it gave
What Is a Factor? A factor is an intermediary agent that provides cash or financing to companies by purchasing their accounts receivables. A factor is essentially a funding source that agrees to pay the company the value of an invoice less a discount for commission and fees. Factoring can help companies improve their short-term cash
What Is Factor Income? Factor income is the flow of income that is derived from the factors of production—the general inputs required to produce goods and services. Factor income on the use of land is called rent, income generated from labor is called wages, and income generated from capital is called profit. The factor income
What Is Factor Investing? Factor investing is a strategy that chooses securities on attributes that are associated with higher returns. There are two main types of factors that have driven returns of stocks, bonds, and other factors: macroeconomic factors and style factors. The former captures broad risks across asset classes while the latter aims to explain returns and
What Are Factors of Production? Factors of production are the inputs needed for creating a good or service, and the factors of production include land, labor, entrepreneurship, and capital. Those who control the factors of production often enjoy the greatest wealth in a society. In capitalism, the factors of production are most often controlled by
What Is an Export? Exports are goods and services that are produced in one country and sold to buyers in another. Exports, along with imports, make up international trade. Instead of confining itself within its geographical borders, countries often intentionally seek external markets around the world for commerce, allowing greater revenue and transactional opportunities. Key
