1. What is Maturity Date?

The maturity date is the date on which the principal amount of a stock or investment becomes due and is repaid to the investor. It marks the end of the investment term.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Issue Date \) — The date when the stock was issued
• \( Term \) — The duration of the stock in years (can include fractions)

Explanation: The calculator adds the term (in years) to the issue date to determine when the stock will mature.

3. Importance of Maturity Date

Details: Knowing the maturity date is crucial for financial planning, cash flow management, and investment strategy. It helps investors know when they can expect to receive their principal back.

4. Using the Calculator

Tips: Enter the original issue date of the stock and the term in years (can include decimal values like 1.5 for 1 year and 6 months). The calculator will compute the exact maturity date.

5. Frequently Asked Questions (FAQ)

Q1: What if the maturity date falls on a weekend or holiday?
A: Typically, the payment is made on the next business day after the maturity date.

Q2: Can I calculate partial years (like 1.5 years)?
A: Yes, the calculator accepts decimal values for terms (e.g., 1.5 for 1 year and 6 months).

Q3: Does this account for leap years?
A: Yes, the calculation automatically accounts for leap years in the date computation.

Q4: What's the difference between maturity date and expiration date?
A: Maturity date refers to when a debt instrument comes due, while expiration date typically refers to when options or derivatives contracts expire.

Q5: Can I use this for bonds as well as stocks?
A: Yes, this calculator works for any fixed-term investment including bonds, CDs, and other debt instruments.