Tontine stocks

Tontine stocks were a financial arrangement where investors pool money into a fund and receive a portion of the returns on investments made with that money. The key feature of a tontine is that when an investor dies, their share of the fund is redistributed to the remaining investors, increasing their share and the value of their annuity. The investment ends when there are only a few surviving investors left.

Tontine stocks were popular in the United States in the 1700s and 1800s, but fell out of favor in the early 1900s. The concept of tontines has been described as a combination of a group annuity and a mortality lottery.