What are Ad Infinitum?

Ad infinitum refers to a Latin phrase which means continue forever and without limit. This term is used in finance to refer to payments from assets at fixed intervals which are presumed to last forever. However, some other financial merchandise does not have the maturity date or rather do not expire. In other words, they are known as perpetuities which make some strings of cash flows to be continuous (ad infinitum).

How Does Ad Infinitum Work?

Generally, payments received from ad infinitum, in other words, continue for a long period of time. However, due to the moneys time value (the moneys present value) of the payments of the far future is negligible. This means that the present value with a fixed end of say 50 years from now, is not quite much less than eternity whose payment continue ad infinitum.

Where can Ad Infinitum be Used?

Note that since the word ad infinitum means to continue for eternity without limit, this term can be applied in various financial contexts. These financial contexts procedures are usually repetitive and are expected to go on for a very long period or even to last forever. In other words, the financial process repeats itself over many years without being terminated. It can sometimes last forever as it has no time limit. Ad infinitum can be used as an investment strategy by investors to utilize things such as:

• Algorithms
• Big data
• Machine learning

This helps in ensuring that the strategies are in place and are able to continue being there forever. The strategies become repetitive over the years to benefit investors.

Cynical Use of Ad Infinitum in Sales and Marketing

Also, ad infinitum can be used in sales and marketing where the investment of products is involved. However, in this case, it is used in the form of cynical context. A good example is where a good number of strategists who yearn for information but instead, they more often get the same information all through. Therefore, they will complain that market hyper is analyzing given trends repetitively (ad infinitum). In other words, there will be certain remarks from individuals lamenting how certain products are being talked about in a repetitive manner (non-stop/ad infinitum).