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Simple English definitions for legal terms
fully paid face-amount certificate
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A quick definition of fully paid face-amount certificate:
A fully paid face-amount certificate is a type of stock certificate that has been paid in full. It is similar to a face-amount certificate, which is a type of investment where the investor pays a fixed amount of money and receives a fixed return at a later date. However, with a fully paid face-amount certificate, the investor has already paid the full amount and does not owe any more money.
A more thorough explanation:
FULLY PAID FACE-AMOUNT CERTIFICATE
A fully paid face-amount certificate is a type of stock certificate that has been paid in full by the shareholder. It is a certificate that represents a specific amount of money that the shareholder has invested in the company.
Example 1: John purchased a fully paid face-amount certificate for $10,000 in XYZ company. This means that John has paid the full amount of $10,000 for the certificate and is now a shareholder in the company.
Example 2: Mary inherited a fully paid face-amount certificate from her grandfather. The certificate was worth $50,000 and had already been paid in full by her grandfather.
A fully paid face-amount certificate is a type of stock certificate that represents a specific amount of money that the shareholder has invested in the company. The examples illustrate this by showing how John and Mary have both invested a specific amount of money in the company and have received a fully paid face-amount certificate in return. This means that they are now shareholders in the company and have a stake in its success.