Month: March 2020

The Baltic Dry Index (BDI) is a shipping and trade index created by the London-based Baltic Exchange. It measures changes in the cost of transporting various raw materials, such as coal and steel.

A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.

An intentionally defective grantor (IDGT) trust is an estate-planning tool used to freeze certain assets of an individual for estate-tax purposes, but not for income-tax purposes. The intentionally defective trust is created as a grantor trust with a purposeful flaw that ensures the individual continues to pay income taxes, as income tax laws will not recognize that assets have been transferred away from the individual.

The market price is the current price at which an asset or service can be bought or sold. The economic theory contends that the market price converges at a point where the forces of supply and demand meet. Shocks to either the supply side or demand side can cause the market price for a good or service to be re-evaluated and change. It is important to calculating consumer and economic surplus.

Hyperledger Fabric is a modular blockchain framework that acts as a foundation for developing blockchain-based products, solutions, and applications using plug-and-play components that are aimed for use within private enterprises.

A death benefit is a payout to the beneficiary of a life insurance policy, annuity, or pension when the insured or annuitant dies. For life insurance policies, death benefits are not subject to income tax and named beneficiaries ordinarily receive the death benefit as a lump-sum payment.

A 403(b) plan (written variously as a 403b or 403 b plan) is a retirement account for certain employees of public schools and tax-exempt organizations. Participants include teachers, school administrators, professors, government employees, nurses, doctors, and librarians. Religious ministers may also participate in these plans. Note, however, that there’s a special plan type—a 403(b)(9)—that’s designed specifically for employees of religious institutions.

Return of capital occurs when an investor receives a portion of their original investment that is not considered income or capital gains from the investment. Note that a return of capital reduces an investor’s adjusted cost basis. Once the stock’s adjusted cost basis has been reduced to zero, any subsequent return will be taxable as a capital gain.

A 403(b) plan (written variously as a 403b or 403 b plan) is a retirement account for certain employees of public schools and tax-exempt organizations. Participants include teachers, school administrators, professors, government employees, nurses, doctors, and librarians. Religious ministers may also participate in these plans. Note, however, that there’s a special plan type—a 403(b)(9)—that’s designed specifically for employees of religious institutions.

Return of capital occurs when an investor receives a portion of their original investment that is not considered income or capital gains from the investment. Note that a return of capital reduces an investor’s adjusted cost basis. Once the stock’s adjusted cost basis has been reduced to zero, any subsequent return will be taxable as a capital gain.