Delayed Perpetuity

Filed Under » ,
Dictionary Says

Definition of 'Delayed Perpetuity'

A perpetual stream of cash flows that start at a predetermined date in the future. For example, preferred fixed dividend paying shares are often valued using a perpetuity formula. If the dividends are going to originate (start) 5 years from now, rather than next year, the stream of cash flows would be considered a delayed perpetuity.
Investopedia Says

Investopedia explains 'Delayed Perpetuity'

The net present value (NPV) of a delayed perpetuity is less than a comparable ordinary perpetuity because, based on time value of money principles, the payments have to be discounted to account for the delay. Retirement products are often structured as delayed perpetuities.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Perpetual Preferred Stock

    A type of ...

  2. Preferred Stock

    A class of ...

  3. Perpetuity

    A constant ...

  4. Dividend Discount Model - DDM

    A procedure for ...

  5. Present Value - PV

    The current ...

  6. Twinternship

    An internship in ...

  7. Average Age Of Inventory

    The average ...

  8. London Business School

    A school of ...

  9. Cash For Clunkers

    A program that ...

  10. Graduate Management Admission Test - ...

    A standardized ...

Articles Of Interest

  1. Borrowing From Your Retirement Plan

    Left with no alternative but to take money out from your retirement savings? Here are some guidelines.

  2. 10 Bank-Breaking Money Myths

    Just because a belief is common, doesn't mean that it's true. Here we separate fact from fiction.

  3. Retire In Style

    Set your sights on the golden years and get there sooner.

  4. The 5% Solution To Financial Freedom

    How can you save the recommended 10% of your income? We'll show you how to get there.

  5. Balance Work And Grad School

    The advantages enjoyed by successful work-study participants are well worth the time and effort exerted.

  6. The Impact Unpaid Internships Have On The Labor Market

    The dramatic increase in unpaid internships has given rise to favorable and unfavorable arguments based on their impact on the students/interns, the labor force and the economy as a whole.

  7. 5 Ways To Fund A College Education

    You can go to college without going broke, but it may take an unconventional approach.

  8. 4 Ways To Get A Head Start On Your Financial Career

    Breaking into the finance business is tough, but these tips can help.

  9. Stock Market Simulators: Play Your Way To Profits

    Online stock simulators make learning about stocks as fun and easy as playing a game.

  10. Ace Your Business School Courses

    Work smarter, not harder, to get top grades in your business school classes.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center