maturity

noun

ma·tu·ri·ty | \ mə-ˈchu̇r-ə-tē

, -ˈchər- also -ˈtu̇r-

, -ˈtyu̇r-\

Definition of maturity

1 : the quality or state of being mature especially : full development the maturity of grain maturity of judgment lacks the wisdom and maturity needed to run the company

2 : termination of the period that an obligation (see obligation sense 2c) has to run

Synonyms & Antonyms More Example Sentences Learn More about maturity

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Synonyms & Antonyms for maturity

Synonyms

adulthood, adultness, majority

Antonyms

immaturity, minority, nonage

Examples of maturity in a Sentence

His behavior shows a lack of maturity. He reached emotional maturity late in his life. the maturity level of a child The bond will reach maturity in 10 years. Maturities on these bonds can be as long as 10 years.

Recent Examples on the Web

Despite having little competition on that front, Pixar wowed audiences not just on the basis of Toy Story’s impressive novelty but also through the film’s sheer wit, storytelling, and maturity. — Allegra Frank, Vox, "All 21 Pixar movies, definitively ranked," 27 June 2019 The concerns teams have about him primarily center on his maturity level after a tumultuous year at USC. — Emily Caron, SI.com, "2019 NBA Draft Grades: No. 30 Pick Kevin Porter Jr. Reportedly Headed to Cavaliers," 20 June 2019 Scanlon said Winter has always been a good player, but the head coach has seen his player’s maturity level rise each season. — Jace Frederick, Twin Cities, "State boys golf: Brock Winter wins Stillwater’s first boys title," 12 June 2019 That speaks to the remarkable maturity and poise Hayes has exuded since bursting onto the national scene as a senior at Moeller. — Nick Moyle, ExpressNews.com, "Texas’ Jaxson Hayes could be top 10 pick in NBA draft," 18 June 2019 His maturity both on and off the court gives the Pelicans a chance to win immediately. — Jeff Duncan, nola.com, "Pelicans have the right man in charge to execute Plan Z," 8 June 2019 His latest film lifts his favorite tone of whimsical kids’ adventure to levels of maturity and skepticism that enrich his unmistakable vision, taking us to a world both strange and strangely familiar. — Colin Covert, idahostatesman, "Wes Anderson’s animated ‘Isle of Dogs’ is a delight with bite | Idaho Statesman," 12 Apr. 2018 Strickland, who apologized on social media Tuesday, had shown manager Bruce Bochy maturity since his fight with Nationals star Bryce Harper in late May of last year. — Janie Mccauley, Sun-Sentinel.com, "Straily, Mattingly both ejected in Marlins' loss to Giants," 20 June 2018 Bode Emily Bode is something of an old soul and her ability to follow her instincts is a testament to her creative maturity. — Nicole Phelps, Vogue, "The Top 10 Shows of New York Fashion Week Fall 2019," 14 Feb. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'maturity.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Last Updated

7 Jul 2019

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The first known use of maturity was in the 15th century

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More Definitions for maturity

maturity

noun

Financial Definition of maturity

What It Is

Maturity is the date on which a bond or preferred stock issuer must repay the original principal borrowed from a bondholder or shareholder.

How It Works

Let's assume that on January 1, 2000, you purchased an XYZ Company bond that had a 10-year maturity. That means that on January 1, 2010, XYZ Company will pay you (or whomever you happen to sell the bond to) the face value (also called the par value) of the bond. The face value is essentially the size of the I.O.U. represented by the security certificate. That is, the face value is the original principal lent to the company. Bond face values are usually $1,000, and preferred stock face values are usually $25.

Some bond and preferred stock maturities are short-term (a year or less), others are intermediate-term (usually two to 10 years) and many are long-term (a period of 10 to 30 years or more). Bonds with maturities of less than 10 years are typically called notes.

Sometimes investors get their original principal back before the maturity date. This usually happens when the issuer takes advantage of special provisions that a security might have. For example, call provisions allow an issuer to redeem, or call, a bond or preferred stock before it matures. Issuers like this provision because if interest rates fall they can pay off the securities with proceeds from new securities issued at a lower interest rate. Investors don't always welcome this because they lose their ability to collect what could be above-market interest payments and they may have to reinvest the money from their redeemed securities at a lower interest rate. To compensate investors for these risks, issuers of callable bonds usually agree to pay more than the face value depending on when the securities are redeemed.

Another example is the sinking fund provision, which requires the issuer to make payments to a trustee while the securities are outstanding. The trustee then uses the funds to repurchase some or all of the securities on the open market.

Usually issuers control whether a security is redeemed before it matures, but in some cases, investors can control this process. A convertible bond, for example, gives the bondholder the option to exchange the bond for a predefined number of securities (usually the issuer's stock) at some future date and under prescribed conditions. An exchangeable bond, on the other hand, allows the bondholder to exchange the bonds for the stock of a company other than the bond issuer. Putable bonds and preferred stocks allow their holders to force the issuer to redeem the security at a set price under certain conditions.

Why It Matters

The maturities of bonds and preferred stocks are very important. Not only do they tell investors when they will be repaid, they are crucial to mathematically determining the appropriate price of the security. This is because the formulas used to price these securities often involve finding the present value of that future return of principal. The longer the investor has to wait for the return of his capital, the less the security tends to be worth.

It is important to note that just because a bond will pay a certain amount at maturity doesn't mean that’s what the bond is worth today. Often, investors can purchase bonds for more or less than face value. For instance, if the Company XYZ bond has a $1,000 face value, it still may only be worth $800 today, or it may be worth $1,500 today depending on market conditions, coupon rates and whether there are any special provisions like those described above.

Even more important is that the presence of a maturity date does not guarantee that the investor will get his money back on that date. For all bonds and preferred stocks (except Treasuries) there is always some chance the issuer will default.

Source: Investing Answers

maturity

noun