What Is the Different Between an Ordinary Annuity and an Annuity

question 45

Essay

What is the different between an ordinary annuity and an annuity due?
Which occurs more in practice?
Give a common example of both.

---

Definitions:

Market Exposure

The degree to which an investment or portfolio is exposed to market risk.

Securities Act of 1933

A U.S. federal law aimed at ensuring transparency and fairness in the securities market by requiring companies to disclose relevant financial information.

Investment Company Act of 1940

US federal legislation that regulates the organization of investment companies and the activities they engage in.

NAV (Net Asset Value)

The per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in its portfolio, minus liabilities, by the number of shares outstanding.