What is fully paid face-amount certificate? Simple Definition & Meaning

Definition of fully paid face-amount certificate

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.

Simple Definition

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.

Legal Definitions - fully paid face-amount certificate

Definition of fully paid face-amount certificate

Simple Definition