The Period During Which Premiums Are Paid for the Purchase

question 34

Multiple Choice

The period during which premiums are paid for the purchase of an annuity is called the:

• A) installment period.
• B) accumulation period.
• C) survivor period.
• D) distribution period.
• E) contract period.

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Definitions:

Rights Offering

A method by which a company raises capital by giving existing shareholders the right to buy additional shares directly from the company at a discounted price before the new shares are offered to the public.

Market Price

The market's current rate for purchasing or selling an asset or service.

Subscription Price

The price at which existing shareholders are allowed to buy additional shares of a company, usually at a discount.

Initial Public Offering (IPO)

The process by which a private company offers shares of stock to the public for the first time to raise capital.