Head Of Household
DefinitionHead of Household is a filing status for individual United States taxpayers. Head Of Household What is 'Head Of Household' A status held by the person in a household who is running the household and looking after a qualified dependent. In order to qualify as head of household, the designated household must be located at the person's...
Call Option
DefinitionA call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option. The buyer of the call option has the right, but not the obligation, to buy an agreed quantity of a particular commodity or financial instrument from the seller of the option at a certain...
Imperfect Competition
What is imperfect competition and why does it exist Imperfect competition is a type of market structure where there are not enough buyers or sellers to allow for perfect competition. There are several reasons why imperfect competition might exist, such as high costs of entry or exit, lack of information, or product differentiation. imperfect competition can lead to higher prices...
Capital Gain
DefinitionA capital gain refers to profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price. Conversely, a capital loss arises if the proceeds from the sale of a capital...
Capital Gains Tax
DefinitionA capital gains tax is a tax on capital gains, the profit realized on the sale of a non-inventory asset that was greater than the amount realized on the sale. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different...
Net Asset Value
DefinitionNet asset value is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value. This may also be the same as the book value or the equity value of...
Past Due
What does 'Past Due' mean Past due is a loan payment that has not been made as of its due date. A borrower who is past due may be subject to late fees, unless the borrower is still within a grace period. Failure to repay a loan on time could have negative implications for the borrower's credit status or cause...
Partnership
Partnerships are a great way to pool resources and expertise in order to achieve a common goal. By working together, partners can share the workload, reduce costs, and increase profits. Partnerships can be formed for any type of business, and there are many different types of partnerships to choose from. There are also many benefits to partnerships, but there...
Passive Income
What is passive income and why should you care Passive income is a type of income that does not require active work to earn. This can include things like dividends from stocks, interest from savings accounts, and rental income. While it may sound like a dream come true, there are a few things to consider before pursuing passive income streams. First,...
Passive ETF
What is a Passive ETF and how does it work A passive Exchange-Traded Fund (ETF) is a type of investment fund that aims to track the performance of a given market index, such as the S&P 500. Unlike an actively-managed fund, a passive ETF does not try to beat the market; instead, it seeks to match the market's return. Passive...