What Is a Term Certain Annuity? A term certain annuity is an insurance product that guarantees a periodic payment of a predetermined amount for a fixed term. Once the term has elapsed, these products are spent, and there will be no future payments, even if the annuitant is still alive. Should the annuity buyer die
What Is a Term Deposit? A term deposit is a fixed-term investment that includes the deposit of money into an account at a financial institution. Term deposit investments usually carry short-term maturities ranging from one month to a few years and will have varying levels of required minimum deposits. The investor must understand when buying
What are Term Federal Funds? Term federal funds are balances purchased in Federal Reserve accounts for more than a single day. Term federal funds generally mature between two days and one year. Banks and related financial institutions may need to obtain these funds when their borrowing needs last for several days, or they cannot merely
What Is a Terminal Elevator? A terminal elevator is a location for the bulk physical transfer of agricultural commodities. In commodities trading, physical delivery of a futures contract’s underlying asset will be standardized by an exchange to be received at a particular location, often called a terminal. This is especially the case for grains and
What Is Terminally Ill? Terminally ill is a medical term that refers to a person who has a disease that cannot be cured and that will eventually lead to their death. Typically, a doctor will use a range of days, months, or years to forecast the life expectancy of someone who has a terminal illness.
What Is Terminal Value (TV)? Terminal value (TV) is the value of an asset, business, or project beyond the forecasted period when future cash flows can be estimated. Terminal value assumes a business will grow at a set growth rate forever after the forecast period. Terminal value often comprises a large percentage of the total
What Is Terminal Year? “Terminal year” refers to the year in which an individual dies, in the context of estate planning and taxation. The term terminal year is used in estate planning and taxation because special tax rules and handling of income and assets may apply during the taxpayer’s final year. Key Takeaways “Terminal year”
What Is a Teaser Rate? A teaser rate generally refers to an introductory rate charged on a credit product. Credits cards may charge borrowers an introductory rate of 0%. Adjustable rate mortgages (ARMs) are also known for charging a low initial rate that helps entice borrowers. Teaser rates may also serve to increase the marketability
Tech bubble refers to a pronounced and unsustainable market rise attributed to increased speculation in technology stocks. Rapid share price growth and high valuations based on standard metrics, such as price/earnings ratio or price/sales, normally characterize a tech bubble. Understanding Tech Bubbles As a general rule of thumb, bubbles form when excess capital, usually at
What Is Technical Analysis? Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. Unlike fundamental analysis, which attempts to evaluate a security’s value based on business results such as sales and earnings, technical analysis focuses on the study of price and
