Tag: rate
Gap Risk
What is 'Gap Risk' The risk that an investment's price will change from one level to another with no trading in between....
Gamma
What is 'Gamma' Gamma is the rate of change in an option's delta per 1-point move in the underlying asset's price. Gamma...
Target Return
What is a 'Target Return' A target return is a pricing model that prices a business based on what an investor would...
Tax Arbitrage
What is 'Tax Arbitrage' The practice of profiting from differences between the way transactions are treated for tax purposes. The complexity of...
Target Risk Fund
What is 'Target Risk Fund' A fund that attempts to expose its investors to a specified amount of risk. The fund manager...
Par Value
DefinitionPar value, in finance and accounting, means stated value or face value. From this come the expressions at par, over par and under par....
Above Par
What is 'Above Par' A term used to describe the price of a security when it is trading above its face value....
Tax Efficiency
Definition
A financial process is said to be tax efficient if it is taxed at a lower rate than an alternative financial process that achieves...
Tax Bracket
DefinitionTax brackets are the divisions at which tax rates change in a progressive tax system. Essentially, they are the cutoff values for taxable income...
Tax Drag
What is 'Tax Drag' The reduction of potential income due to taxes. Drag describes the loss in returns owing to taxation, usually...