PERPETUITY

Perpetuity

A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence . Real estate and preferred stock are among some types of investments that effect the results of a perpetuity, and prices can be established using techniques for valuing a perpetuity. Perpetuities are but one of the time value of money methods for valuing financial assets. Perpetuities are a form of ordinary annuities.

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perpetuity

Noun

  1. The quality or state of being perpetual; endless duration; uninterrupted existence.
  2. Something that is perpetual.
  3. A limitation intended to be unalterable and of indefinite duration; a disposition of property which attempts to make it inalienable beyond certain limits fixed or conceived as being fixed by the general law.
  4. An annuity in which the periodic payments begin on a fixed date and continue indefinitely.


The above text is a snippet from Wiktionary: perpetuity
and as such is available under the Creative Commons Attribution/Share-Alike License.

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