Investment Glossary
| Term | Definition |
|---|---|
| Annuity |
A financial product that is designed to provide a steady cash flow at a future date based on an initial lump sum investment, and really refers to any terminating stream of fixed payments over a specified period of time. This term is often used in the world of finance, and usually describes how the stream of payments is valued; valuation considers the time value of money, and concepts such as interest rate and future value. |
