Qualifying Disposition
What is a Qualifying Disposition? Qualifying disposition is a tax term used in the U.S. that refers to a sale or other disposition of shares that receive favorable tax treatment for the individual disposal of the stock. Qualifying dispositions are important for stockholders because there may be a wide disparity between the stockholder’s regular income...
Jakarta Stock Exchange (JSX)
What is the Jakarta Stock Exchange (JSX)? The Jakarta Stock Exchange (JKSE) was a stock exchange in Jakarta, Indonesia. In Indonesia, the exchange was called “Bursa Efek Jakarta” or BEJ. The exchange later merged with Surabaya Stock Exchange, ultimately creating the Indonesia Stock Exchange or IDX. History of the Jakarta Stock Exchange The Jakarta Stock...
Equity Premium Puzzle (EPP)
What is the Equity Premium Puzzle (EPP)? The Equity Premium Puzzle (EPP) refers to the fact that stocks have outperformed Treasury bonds by an extraordinarily high margin over the last century – a margin so high that it is very difficult to explain regardless of how thoroughly the situation is analyzed. EPP is one of...
Financial System
What is a Financial System? A financial system is a network of financial institutions – such as insurance companies, stock exchanges, and investment banks – that work together to exchange and transfer capital from one place to another. Through the financial system, investors receive capital to fund projects and receive a return on their investments....
Elective-Deferral Contribution
What is an Elective-Deferral Contribution? An elective-deferral contribution is an employee-authorized contribution made from an employee’s salary account to an employer-sponsored retirement plan. The employee needs to provide consent to the employer to deduct contributions. The funds contributed to retirement plans, including 401(k) and 403(b). Elective deferral contributions are a popular way to save for...
