What is an Exempt Transaction? Exempt transactions are securities transactions that are exempt from registration requirements, either in part or in full, outlined in the 1933 Securities Act. The 1933 Securities Act was enacted after the Great Depression in the United States to bring regulation and transparency to the U.S. markets to help avoid extreme…
What is an Exempt-Interest Dividend? Exempt-interest dividend refers to any dividend or part of it that a regulated investment company pays that is not subject to tax. It is designated as such in a written notice that is mailed to the company’s shareholders within 45 days after the end of the taxable year. In the…
What is an Exempt Employee? An exempt employee is an individual who is exempt from any overtime pay or minimum wage requirements (or both). Exempt employees fall into a special category due to their unique roles and responsibilities. The exemption is generally found in U.S. labor laws and other types of legal systems in countries…
What is an Exemption? In finance and accounting, an exemption is generally regarded as the exclusion of a payment or any type of liability that is put in place by a legal authority. It is colloquially used to describe tax exemptions that people and businesses can utilize to reduce the amount owed to federal and…
What are Exports? Exports are goods and services made by a country and sold to another. They are crucial to many economies, as they provide goods and services to areas that may not be in the position to produce such products; thereby, creating new markets. Largest Exporting Companies Based on a WorldAtlas report, the five-largest…
Following is everything you need to know about building your one-page strategic plan. Strategy Definition If you look up ‘strategy definition’ in a dictionary, you’ll usually find answers that say things like: Developing a plan Setting goals Writing policy But this view of strategic planning misses the point. A much better definition of strategic planning…
What is Economic Expansion? Economic expansion happens when real GDP grows from a trough to a peak within two or more subsequent quarters. The expansion occurs during times of economic stimulation, where there is a rise in employment, followed by consumer confidence and discretionary spending. The phase is also known as economic recovery. Understanding Economic…
What is Homeowners Insurance? Homeowners insurance refers to a type of property insurance that covers damages to property, personal belongings, and personal liability suffered when an insured peril occurs. The policy provides financial relief to the homeowner when the covered event causes damage to the property or injury to another person. For example, when an…
What is an Exit Strategy? An exit strategy is a plan for a partner or owner to transition out of ownership of a company. It is accomplished through a merger and acquisition (M&A) with another company, through an initial public offering (IPO) to investors, through a transfer to a successor (e.g., family member), through liquidation,…
What is Horizon Analysis? Horizon analysis is a method used to estimate a portfolio’s expected total return over a given investment horizon. It uses scenario analysis to view a given bond swap as a well-defined mixture of components from idealized swap categories at each point in time. Horizon analysis enables the portfolio manager to associate…
