Contributed capital, also known as paid-in capital, is the cash and other assets that shareholders have given a company in exchange for stock. Investors make capital contributions when a company issues equity shares based on a price that shareholders are willing to pay for them. The total amount of contributed capital or paid-in-capital represents their stake or ownership in the company.
Offer in compromise is a program instituted by the Internal Revenue Service (IRS) for taxpayers who cannot pay the taxes they owe, or for taxpayers for whom it would create a financial hardship to pay the taxes they owe. An offer in compromise allows taxpayers to settle their tax bill for less than the full amount owed.
Unscheduled property floater refers to an addition to an existing property-insurance policy that provides coverage for items that have not been individually itemized or valued. An unscheduled property floater usually provides coverage against damage, theft or loss of these items. The additional cost is generally much lower than the original policy premium.
X-efficiency is the degree of efficiency maintained by firms under conditions of imperfect competition. An example of imperfect competition is a monopoly. According to the neoclassical theory of economics, under perfect competition, companies must maximize efficiency to succeed and make a profit; those who do not will fail and be forced to exit the market.
A credit score is a number ranging from 300-850 that depicts a consumer’s creditworthiness. The higher the credit score, the more attractive the borrower. A credit score is based on credit history: number of open accounts, total levels of debt, and repayment history. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner.
Wearable technology, also known as wearables, is a category of electronic devices that can be worn as accessories, embedded in clothing, implanted in the user’s body, or even tattooed on the skin. The devices are hands-free gadgets with practical uses, powered by microprocessors and enhanced with the ability to send and receive data via the Internet.
A stock appreciation right (SAR) is a form of bonus compensation given to employees that is equal to the appreciation of company stock over an established time period. Similar to employee stock options (ESO), SARs are beneficial to the employee when company stock prices rise; the difference with SARs is that employees do not have to pay the exercise price, but receive the sum of the increase in stock or cash.
A guaranteed investment contract (GIC) is an insurance company provision that guarantees a rate of return in exchange for keeping a deposit for a certain period. A GIC appeals to investors as a replacement for a savings account or U.S. Treasury securities. GICs are also known as funding agreements.
Welfare refers to a range of government programs that provide financial or other aid to individuals or groups who cannot support themselves. Welfare programs are typically funded by taxpayers and allow people to cope with financial stress during rough periods of their lives. In most cases, people who use welfare will receive a biweekly or monthly payment. The goals of welfare vary, as it looks to promote the pursuance of work, education or, in some instances, a better standard of living.
A guaranteed investment contract (GIC) is an insurance company provision that guarantees a rate of return in exchange for keeping a deposit for a certain period. A GIC appeals to investors as a replacement for a savings account or U.S. Treasury securities. GICs are also known as funding agreements.