Face-Amount Certificate Company Definition.

A Face-Amount Certificate Company is a life insurance company that issues policies in which the death benefit is equal to the face value of the policy. This type of policy is also known as a "straight life" policy.

What is Section 17 of Investment Company Act? Under section 17 of the Investment Company Act, a mutual fund is allowed to merge with another investment company or to sell all of its assets to another investment company, as long as the merger is approved by a majority of the fund's shareholders. The SEC must also approve the merger, and it will only do so if it believes that the merger is in the best interests of the fund's shareholders.

What is face amount? The face amount of a security is the nominal or par value of the security. The face amount is the amount that will be paid to the holder of the security at maturity. For example, a $100 bond has a face value of $100. The face value is also referred to as the par value or principal amount.

Are face-amount certificates redeemable?

Yes, face-amount certificates are redeemable. The holder of a face-amount certificate is entitled to receive the face value of the certificate upon redemption. The issuer may impose certain conditions on redemption, such as a waiting period or a fee, but the holder is generally entitled to receive the face value of the certificate.

What does minimum face amount mean? In the context of mergers and acquisitions, the minimum face amount is the smallest amount of securities that can be sold in a transaction. This is typically set by the exchange on which the securities are traded. For example, the New York Stock Exchange (NYSE) has a minimum face amount of $1,000 for stocks and $5,000 for bonds.

What is a closed-end company?

A closed-end company is a type of business organization in which the number of shareholders is limited and shares are not traded on a public exchange. Closed-end companies are typically structured as investment trusts, unit trusts, or mutual funds. In the United States, closed-end companies are regulated by the Investment Company Act of 1940.