This is an important distinction to note when purchasing bonds. The company decides it will start paying its shareholders dividends to distribute a portion of the earnings. ABC’s management decides it will distribute a dividend of $0.50 for every share. A ten-year general obligation bond was issued by Ohio Pty Ltd in January 2019, the bond will pay interest on a semi-annual basis until the maturity of the bond in December 2029.
When to Use Biennial
Also, since ‘semi-’ and ‘bi-’ are such common prefixes, you’ll be able to transfer parts of these pronunciations to other new words you learn. However, each word also has its own other meaning which is often what ends up sparking debate. As mentioned above, ‘Biannual’ can also refer to something that happens every two years. In contrast, ‘Semiannual’ can refer to something that happens every half a year or over a period of six months. Biennial is an adjective which means occurring every two years, or every other year.
Common Misconceptions About Biannual and Semiannual
We strive to empower readers with the most factual and reliable climate finance information possible to help them make informed decisions. Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications. Our work has been directly cited by organizations including MarketWatch, Bloomberg, Axios, TechCrunch, Forbes, NerdWallet, GreenBiz, Reuters, and many others. The prefix “bi” means “two” or “twice.” So, anything that happens two times per year regardless of the time between the occurrences is biannual. Use “semi-annual” if an event occurs precisely six months apart during the year.
Practical Applications of Biannual and Semiannual
- Mark is granted a loan with a compound interest rate, and the interest rate is payable semi-annually.
- Mark’s company often purchases large amounts of inventory to fill construction demands.
- Knowing when to use the words is only half the battle; we want you to be able to say them properly too.
- A simple calendar marking biannual events can clarify their frequency.
A third adjective, biennial, describes something that occurs every other year. This term is often confused with biannual due to their similarity in spelling. Some cultural festivals occur biannually, attracting large crowds. Many companies release financial reports on a semiannual basis.
So, if you have a “semi-annual” event, it means there is a six-month gap between the two. Semi-annual vs. bi-annual have nearly identical meanings that it can be head-scratching to know which one to use. In this article, we’ll teach you the differences between these two confusing terms and the best choice when describing something that happens twice a year. Knowing that ‘semi-’ refers to something incomplete helps remind us that a ‘Semiannual’ event occurs twice in one year. Additionally, since ‘semi-’ refers to half of something, we see how it can correlate to just half of the year.
More Commonly Confused Words
So how does someone know which particular meaning we have in mind? Well, unless we provide them with a contextual clue, they don’t. Some people prefer to use semiannual to refer to something that occurs twice a year, reserving biannual for things that occur once every two years. This practice is hardly universal among English speakers, however, and biannual remains a potentially ambiguous word.
Mark sets up an organizational meeting semi-annually to discuss the loan with other stakeholders. Seeing that the meeting is set semi-annual, it will occur twice a year. A semi-annual loan payment starting on 1 January 2019 would require the first payment on 1 January and on 1 July. Semiannual (sometimes written as semi-annual), also known as bi-annual, is when an event occurs twice a year, every six months. Semiannual is an adjective that describes something that is paid, reported, published, or otherwise takes place twice each year, typically once every six months. Carbon Collective is the first online investment advisor 100% focused on solving climate change.
To avoid confusion, remember that both terms essentially mean the same thing regarding frequency. However, some people may confuse semiannual with other frequencies due to its prefix “semi.” Let’s say you have a meeting that happens twice a year – this would be considered semiannual. If you have a meeting that happens every two years, that would be biennial. You also should know that “bi-annual” can also mean something that happens every other year, whereas semi-annual only has one meaning. Be sure to check out more confusing word articles to stay sharp and feel confident entering other grammar debates.
Sometimes, English has more than one word that refers to the same idea. Other times, very similar words will refer to different ideas, introducing confusion. Regularly revisiting definitions can reinforce your understanding. Whether in business, education, or everyday life, clarity matters.
Business can state payment periods, loans, or meetings as semi-annually. For example, if the bond paid the yield annually, the bondholder would receive $100 a year. Now, if the bond paid the yield semiannually, the bondholder biannual vs semiannual would receive $200 a year. The main difference between semiannual and biennial is that semiannual refers to something that happens twice a year, while biennial refers to something that happens every two years.
Semiannual means an event that happens twice a year, every six months. Mark is granted a loan with a compound interest rate, and the interest rate is payable semi-annually. Businesses can decide how they would like to pay dividends to their shareholders, they do have the option to pay no dividends. You have been invited to a biannual event, but then later you see it referred to as a semiannual event.