Tag: loss

A backspread is a type of options spread in which the trader holds more long positions than short positions. This strategy can be used...

What is 'Calendar Year Accounting Incurred Losses ' Calendar year accounting incurred losses is a term used in the insurance industry to...

DefinitionBasis, as used in United States tax law, is the original cost of property, adjusted for factors such as depreciation. When property is sold,...

What is 'Call Ratio Backspread' A very bullish investment strategy that combines options to create a spread with limited loss potential and...

DefinitionA capital gain refers to profit that results from a sale of a capital asset, such as stock, bond or real estate, where the...

DefinitionThe term patent cliff refers to the phenomenon of patent expiration dates and an abrupt drop in sales that follows for a group of...

What is 'Passive Activity' Passive activity is activity in which the taxpayer did not materially participate in during the tax year. Internal...

What is 'Paper Profit (Paper Loss)' Unrealized capital gain (or capital loss) in an investment. It is calculated by comparing the market...

DefinitionPanic selling is a wide-scale selling of an investment which causes a sharp decline in prices. Specifically, an investor wants to get out of...

What is 'Passive Activity Loss Rules' A set of rules that prohibits using passive losses to offset earned or ordinary income. Passive...