With discretion is a term that refers to an order type executed by a floor broker according to his or her best judgment. A with discretion order allows for greater customization and flexibility to try and achieve the best price for the trade. Brokers may also refer to a with discretion order as a not-held order, which gives price and time discretion.
The federal income tax is the tax levied by the Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. Federal income taxes are applied to all forms of earnings that make up a taxpayer’s taxable income, such as employment earnings or capital gains.1
Medicaid is the United State’s public health insurance program that provides health care coverage to low-income families or individuals. It covers doctor visits, hospital stays, long-term medical care, custodial care, and other health-related costs.
Conditional Value at Risk (CVaR), also known as the expected shortfall, is a risk assessment measure that quantifies the amount of tail risk an investment portfolio has. CVaR is derived by taking a weighted average of the “extreme” losses in the tail of the distribution of possible returns, beyond the value at risk (VaR) cutoff point. Conditional value at risk is used in portfolio optimization for effective risk management.
In finance, the term holdovers refers to transactions—usually checks—that have not yet been processed. In most cases, the period of time in which checks are held as holdovers typically does not exceed one business day.
Accounting theory is a set of assumptions, frameworks, and methodologies used in the study and application of financial reporting principles. The study of accounting theory involves a review of both the historical foundations of accounting practices, as well as the way in which accounting practices are changed and added to the regulatory framework that governs financial statements and financial reporting.
Software-as-a-Service (SaaS) is a software licensing model in which access to the software is provided on a subscription basis, with the software being located on external servers rather than on servers located in-house. Software-as-a-Service is typically accessed through a web browser, with users logging into the system using a username and password. Instead of each user having to install the software on their computer, the user is able to access the program via the internet.
A gray market is an unofficial market for financial securities. Gray (or “grey”) market trading generally occurs when a stock that has been suspended from trades off the market, or when new securities are bought and sold before official trading begins. The gray market enables the issuer and underwriters to gauge demand for a new offering because it is a “when issued” market (i.e., it trades securities that will be offered in the very near future). The gray market is an unofficial one but is not illegal.
Accidental death and dismemberment (AD&D) insurance is usually a rider to a health insurance or life insurance policy. The rider covers the unintentional death or dismemberment of the insured. Dismemberment includes the loss—or the loss of use—of body parts or functions (e.g., limbs, speech, eyesight, and hearing). Because of coverage limitations, prospective buyers should carefully read the terms of the policy. Because AD&D insurance is limited and generally covers unlikely events, it is supplemental life insurance and not an acceptable substitute for term life insurance.
An optionable stock is one where the stock has the necessary liquidity such that a market maker, like a bank or an accredited financial institution, lists that stock’s options for trading.