American Institute of Certified Public Accountants (AICPA)
The AICPA is the accounting profession’s largest member association, representing many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for the profession and U.S. auditing standards for audits of private companies, nonprofit organizations and federal, state, and local governments. The AICPA issued Statement of Position (SOP) […]
Buy and Hold
A stable value investment strategy that refers to a portfolio of assets that are typically purchased and then held to maturity. In this buy and hold strategy, the investment contract associated with such assets typically terminates at the maturity of the assets. (Compare to constant duration and maturing.)
Credit Risk
The risk that an investment will default, i.e., the borrower or guarantor (the bond or investment contract issuer) will not pay principal and interest as scheduled. (See also impaired securities.)
ERISA
See the Employee Retirement Income Security Act of 1974, as amended.
Guaranteed Insurance Account (GIA)
See life insurance directly sold.
Market Value
With respect to an investment (e.g., a bond, stock, or fund share), market value is the cash value that selling such investment at a given price in the open market generates. As prices for investments tend to fluctuate daily, the actual or implied market value of an investment will likewise tend to fluctuate daily. With […]
Ordinary Withdrawals
See book value withdrawals.
Risk Charge
The cost embedded in every stable value investment contract to cover the risks assumed by the issuer. Typically the charge is based on the risks associated with the specific plan and/or assets involved.
Surrender Charge
Any payment required for terminating an investment contract, typically a guaranteed investment contract, prior to its scheduled maturity date.
