Trust Certificate

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Dictionary Says

Definition of 'Trust Certificate'

A bond or debt investment, usually in a public corporation, that is backed by other assets which serve a purpose similar to collateral. If the company experiences difficulty making payments, the assets may be seized or sold to help specific trust certificate holders recover a portion of their investment. The potential type of company assets used to create a trust certificate can vary, but most typically are other shares of company stock or physical equipment.
Investopedia Says

Investopedia explains 'Trust Certificate'

Investors holding trust certificates usually experience a higher level of safety than investors owning unsecured or uncollateralized bonds. But, they also typically earn a lower level of interest than those investors willing to take greater risks. While that may sound like an attractive balance for some investors, investing in trust certificates can be complex because it requires both an understanding of a company's overall financial situation and the nature of the asset that underlies the trust certificate.

Special caution should be taken when investing in trust certificates with an underlying asset that is the same company's stock. If the company runs into financial trouble, the asset backing the trust certificate can become as worthless as the trust certificate itself.
Search results for

'Trust Certificate'

  • Series 63 Study Guide - The Foundation - The Uniform Securities ...

    http://www.investopedia.com/exam-guide/series-63/foundation/usa-uniform-securities-act-part-5.asp
    ... evidence of indebtedness; certificate of interest or participation in a profit-sharing
    agreement; collateral trust certificate; preorganization certificate or ...

  • Series 66 Study Guide - Regulation of Securities - Introduction ...

    http://www.investopedia.com/exam-guide/series-66/regulation-of-securities/default.asp
    ... indebtedness; certificate of interest or; participation in a profit-sharing
    agreement; collateral trust certificate; pre-organization ...

  • Series 6 Study Guide - Securities Industry Regulations ...

    http://www.investopedia.com/exam-guide/finra-series-6/securities-industry-regulations/securities-act-1934.asp
    ... in any profit-sharing agreement or in any oil, gas, or other mineral royalty or
    lease, any collateral-trust certificate, preorganization certificate or ...

  • Series 6 Study Guide - Investment Companies - Unit Investment ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-companies/unit-investment-trust.asp
    ... supervised, not managed, as it remains fixed for the life of the trust. ... Face Amount
    Certificates A face amount certificate company issues debt certificates at ...

  • Series 6 Study Guide - Investment Securities - Corporate Bonds ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-securities/corporate-bonds.asp
    ... the legal agreement between the investor and the corporation are spelled out in
    the bond's indenture (also called the "deed of trust") on the bond certificate. ...

  • Certificates Of Deposit: Introduction | Investopedia

    http://www.investopedia.com/university/certificate-of-deposit-cd/
    ... Safety is a hallmark of the traditional certificate of deposit ... Accounts set up under
    a different set of provisions, such as a trust, can be covered to a higher ...

  • Series 66 Study Guide - Regulation of Securities - Exempt ...

    http://www.investopedia.com/exam-guide/series-66/regulation-of-securities/exempt-securities.asp
    ... Equipment trust certificates - An equipment trust certificate with respect to equipment
    leased or conditionally sold to a person - ie equipment lease financing ...

  • Certificates Of Deposit: Introduction | Investopedia

    http://www.investopedia.com/university/certificate-of-deposit-cd/default.asp
    ... Safety is a hallmark of the traditional certificate of deposit ... Accounts set up under
    a different set of provisions, such as a trust, can be covered to a higher ...

  • Series 6 Study Guide - Securities Industry Regulations ...

    http://www.investopedia.com/exam-guide/finra-series-6/securities-industry-regulations/investment-company-definition.asp
    In this section Classification of Investment Companies as Face-Amount Certificate
    Company, Unit Investment Trust, Management Company and exemptions to it. ...

  • CIPM: The Key To A Niche Career In Finance

    http://www.investopedia.com/articles/professionaleducation/09/certificate-investment-performance-measurement-cipm.asp
    ... David has earned both the Chartered Financial Analysts (CFA) and the Certificate
    in Investment Performance Measurement (CIPM) designations ... Building Client Trust. ...

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