A
perpetuity is an
annuity that has no end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence (the
United Kingdom (UK) government has issued them in the past; these are known and still trade as
consols). Real estate and
preferred stock are among some types of investments that affect the results of a perpetuity, and prices can be established using techniques for valuing a perpetuity. Perpetuities are but one of the
time value of money methods for valuing financial assets. Perpetuities are a form of ordinary annuities.