Guaranteed Return

Guaranteed Return

A return that a company is required to pay. Bonds and coupons have guaranteed returns because the issuing company agrees to pay coupons and guaranteed dividends. This contrasts with non-guaranteed returns, such as the dividends on common stock, which a company may decide not to pay. A guaranteed return does not necessarily mean that the company will pay (the company may, for example, default or go bankrupt). However, under some circumstances, the holders of securities with guaranteed returns may force the liquidation of the company.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Rigen, which is based in Tagum City, Davao del Norte, entices the public to invest with a guaranteed return of 400 percent in just a month or so, the SEC said in an advisory dated May 24.
LIC (International), Oman, is offering a guaranteed return insurance investment plan named 'Future Secure'.
Guaranteed return on investment is a frequent inclusion in recent off-plan marketing by developers in the UAE as they seek to set themselves apart in enticing investors where interest may otherwise wane.
The First Division leaders may have won the League Cup on penalties at the Brandywell back in 2002, but last night's excellent inten g performance at the northern venue saw them issue a statement of intent as they prepare for a guaranteed return to the top flight in the League of Ireland next season.
A lower maximum would further reduce the attractiveness of these products to customers but we believe the relevance of the guaranteed rate has already diminished significantly and that only a small proportion of products are sold with a guaranteed return of the maximum allowed.
In the case of "safe" guaranteed returns from investment products, the buyers of these products would probably be better off by forgoing the guarantee and simply investing their money in the markets without the promise of a guaranteed return.
Probably the next timeshare investment scam for the unwary investor to invest in a "guaranteed return from student accommodation"?
The Punjab govt has announced a guaranteed return of 17 per cent to 18 per cent on equity in dollar terms.
According to the court, there was no intent to raise additional revenue from the transferred patents, the cash flows were circular, and one of the partners received a specified guaranteed return. Also, the court held that the foreign banks were not actual partners, since their interests resembled debt rather than equity due to their guaranteed return.
However, in these volatile times, a guaranteed return is welcome news, and interest in fixed income has been soaring.
The confidence he exudes and the claim of written guarantee are enough to convince you to buy the plan without asking if the ' guaranteed return' is on the fund value or the sum assured ( which remains the same throughout the policy period).

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