Variable annuities
annuity contracts in which the issuer pays a periodic amount linked to the investment performance of an underlying portfolio. |
Similar financial terms
Stochastic variableA variable whose future value is uncertain.
Variable rate loan
Loan made at an interest rate that fluctuates based on a base interest rate such as the Prime Rate or LIBOR.
Variable rated demand bond
Variable rated demand bond (VRDB) is a floating rate bond that can be sold back periodically to the issuer.
Variable rate CDs
Short-term certificate of deposits that pay interest periodically on roll dates. On each roll date, the coupon on the CD is adjusted to reflect current market rates.
Variable price security
A security, such as stocks or bonds, that sells at a fluctuating, market-determined price.
Variable life insurance policy
A whole life insurance policy that provides a death benefit dependent on the insured's portfolio market value at the time of death. Typically the company invests premiums in common stocks, and hence variable life policies are referred to as equity-linked policies.
Variable cost
A cost that is directly proportional to the volume of output produced. When production is zero, the variable cost is equal to zero. A variable is a cost of producing the product which a company sells. It would include such items as materials and labor that go directly into producing the shipped item. Another term for this is direct cost. These costs are usually shown directly under revenues on an income statement as the first costs associated with producing the revenues that are recorded.
Variable
A value determined within the context of a model. Also called endogenous variable.
Random variable
A function that assigns a real number to each and every possible outcome of a random experiment.
Normal random variable
A random variable that has a normal probability distribution.
Continuous random variable
A random value that can take any fractional value within specified ranges, as contrasted with a discrete variable.
Variable Price Limit
A price limit schedule, determined by an exchange, that permits variations above or below the normally allowable price movement for any one trading day.
