Money Management Glossary: Investment Products Terms

Annuity
The term Annuity denotes a contract between an insurance company and an individual that guarantees regular (periodic) payments to the individual for a specified duration of time.
Dividend
Dividend Income to a Shareholder is his/her share of a corporation's profit. Dividends distributed to shareholders are reported to IRS using form 1099-DIV.
Interest
The phrase "Interest Income" denotes the income earned from a form of investment such as bonds, savings accounts, etc. Interest incomes are reported on IRS Form 1099-INT.
Deferred Interest
The phrase "Deferred Interest" describes an interest liability that has accrued but has remained unpaid. Interest deferment often occurs with Adjustable Rate Mortgage (ARM) loans wherein a payment remittance does not fully satisfy the amount of interest due for a given period.