tontine: M-W's Word of the Day

****************************************************************
Happy Birthday Noah Webster! At a youthful 247, you're
still the Web Master! Read all about him here:
http://www.merriam-webster.com/info/noah.htm
****************************************************************

The Word of the Day for October 15 is:

tontine \TAHN-teen\ noun
: a joint financial arrangement whereby the participants usually contribute equally to a prize that is awarded entirely to the participant who survives all the others

Example sentence:
When all the participants in the tontine but one were murdered, you can guess who the primary suspect was.

Did you know?
Tontines were named after their creator, a Neapolitan banker named Lorenzo Tonti. In 1653, Tonti convinced investors to buy shares in a fund he had created. Each year, the investors earned dividends, and when one of them died, his or her share of the profits was redistributed among the survivors. When the last investor died, the capital reverted to the state. Louis XIV of France used tontines to save his ailing treasury and to fund municipal projects, and private tontines (where the last surviving investor -- and subsequently his or her heirs -- got the cash instead of the state) became popular throughout Europe and the U.S. Eventually, though, tontines were banned; there was just too much temptation for unscrupulous investors to bump off their fellow subscribers.

You Are Subscribed As: WORDFORTHEDAY.DROP@blogger.com
To unsubscribe, change your e-mail address or to subscribe to the html
version of Merriam-Webster's Word of the Day, featuring audio
pronunciations, please visit:

http://www.startsampling.com/sm/wod/changeofaddress.iphtml

(c) 2005 by Merriam-Webster, Incorporated

Merriam-Webster, Inc.
47 Federal Street
P.O. Box 281
Springfield, MA 01102

*mf mwt 101505 WORDFORTHEDAY.DROP@blogger.com mf*