Month: July 2020

A linearly weighted moving average (LWMA) is a moving average calculation that more heavily weights recent price data. The most recent price has the highest weighting, and each prior price has progressively less weight. The weights drop in a linear fashion. LWMAs are quicker to react to price changes than simple moving averages (SMA) and exponential moving averages (EMA).

Form 6251 is an Internal Revenue Service (IRS) tax form used to determine the amount of alternative minimum tax (AMT) that a taxpayer may owe. Some taxpayers with higher incomes can claim certain deductions that allow them to reduce their regular tax obligation. The AMT sets an upper limit on how much that deduction can be to ensure the wealthy pay their fair share of taxes. If you are among those to whom it applies, you’ll pay the AMT instead of standard income taxes.

HODL is a term derived from a misspelling of hold that refers to buy-and-hold strategies in the context of bitcoin and other cryptocurrencies.

Branch accounting is a bookkeeping system in which separate accounts are maintained for each branch or operating location of an organization. Typically found in geographically dispersed corporations, multinationals and chain operators, it allows for greater transparency in the transactions, cash flows and overall financial position and performance of each branch.

The spot market is where financial instruments, such as commodities, currencies and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument. A futures contract, on the other hand, is based on the delivery of the underlying asset at a future date.

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company’s operations, financial position, and cash flows.

Z is a Nasdaq stock symbol specifying that a stock is a miscellaneous entity, such as a depositary receipt, stub, additional warrant or unit.

Opco is the abbreviation for operating company, typically used when describing the primary operating company involved in an opco/propco deal. In some instances, the operating company spins off a subsidiary as a real estate investment trust (REIT) to gain tax advantages. The property company (propco) maintains ownership of all real estate and related debt, offering the opco advantage related to credit rating and financing issues.

A proportional tax is an income tax system that levies the same percentage tax to everyone regardless of income. A proportional tax is the same for low, middle, and high-income taxpayers. Proportional taxes are sometimes referred to as flat taxes.

Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis. The total operating cost for a company includes the cost of goods sold, operating expenses as well as overhead expenses. The operating cost is deducted from revenue to arrive at operating income and is reflected on a company’s income statement.