What Is a Single-Premium Deferred Annuity? A single-premium deferred annuity (SPDA) is an annuity established with a single payment featuring investment growth solely during the accumulation phase. That growth occurs on a tax-deferred basis until annuitization, at which time regular payments will begin. Single-premium deferred annuities can be either fixed or variable, and distributions are
What Is a Single-Purpose Reverse Mortgage? A single-purpose reverse mortgage is an agreement through which lenders make payments to borrowers in exchange for a portion of the borrower’s home equity. Borrowers must use these payments for a specific purpose approved by the lender. These may be contrasted with proprietary reverse mortgages and home equity conversion
What Is a Single Stock Future? A single stock futures (SSF) contract is a standard futures contract with an individual stock as its underlying security. Each contract typically provides for the delivery of 100 shares of the stock. Unlike the underlying shares, single stock futures do not convey voting rights or dividends. In contrast with
What Is a Sinkable Bond? A sinkable bond is a type of debt that is backed by a fund set aside by the issuer. The issuer reduces the cost of borrowing over time by buying and retiring a portion of the bonds periodically on the open market, drawing upon the fund to pay for the
What Is a Sinker? A sinker is a colloquial term for a bond whose payments, coupon, and principal, are paid by a sinking fund set up by the issuer. Key Takeaways A sinker is a colloquial term for a bond whose payments, coupon and principal, are paid by a sinking fund set up by the
What Is a Sinking Fund? A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company that issues debt will need to pay that debt off in the future, and the sinking fund helps to soften the hardship of a large outlay of revenue. A
What Is a Shutdown Point? A shutdown point is a level of operations at which a company experiences no benefit for continuing operations and therefore decides to shut down temporarily—or in some cases permanently. It results from the combination of output and price where the company earns just enough revenue to cover its total variable
What Is the Singapore Interbank Offered Rate (SIBOR)? The Singapore Interbank Offered Rate (SIBOR) is the benchmark interest rate, stated in Singapore dollars, for lending between banks within the Asian market. The SIBOR is a reference rate for lenders and borrowers that participate directly or indirectly in the Asian economy. Key Takeaways The Singapore Interbank
What Is a Standard Industrial Classification (SIC) Code? Standard Industrial Classification (SIC) codes are four-digit numerical codes assigned by the U.S. government that categorize the industries to which companies belong, while also organizing industries by their business activities. The SIC codes were created by the U.S. government in 1937 to classify and analyze economic activity across
What Is Société d’investissement à Capital Variable (SICAV)? A Société d’investissement à Capital Variable, or SICAV fund, is a publicly-traded open-end investment fund structure offered in Europe. SICAV funds are similar to open-end mutual funds in the U.S. Shares in the fund are bought and sold based on the fund’s current net asset value (NAV). Key Takeaways A
