A grossed-up gift is the result of adding the gift tax paid by the decedent of the estate back to the gift when it is included in the gross estate.
A ground lease involves leasing land, usually on a long-term basis, to allow the lessee to develop property on that land.
Ground rent is the revenue generated by leasing out a piece of land. It is considered ordinary income for tax purposes but can be reclassified in some circumstances.
Ground Zero refers to the specific point of impact where the full effects of a particular action, such as a bomb explosion or terrorist attack, are experienced.
A parent undertaking and its subsidiary or subsidiaries. In UK tax law, two or more companies constitute a group where one company holds more than 50% of the shares in the other(s). This test is usually applied to the voting share capital only. Where there is a group of companies, the availability of the lower rates of corporation tax is restricted.
Group accounts, also known as group financial statements or consolidated financial statements, provide a comprehensive overview of the financial status of a parent company and its subsidiaries.
A group company is a term referring to an organization that is either a subsidiary undertaking or a holding company within a larger conglomerate.
Group Credit Insurance is a coverage issued to a creditor on the lives of multiple debtors for outstanding loans. In the event of a debtor's death before repayment, the policy pays the remaining loan amount to the creditor. This type of insurance contract covers an entire group of debtors instead of individual policies for each debtor.
A pension plan funding instrument in which contributions paid by an employer are deposited to accumulate at interest, and an immediate annuity is purchased upon retirement for the employee. The benefit is determined by a formula and the investment earnings on funds left to accumulate at interest.
Group Disability Insurance provides coverage for a group of employees, offering monthly benefits if members are unable to perform their job functions due to illness or accident. Benefits are typically limited to a specified duration and capped at a percentage of pre-disability earnings or a flat dollar amount, whichever is lower.
The social interaction of the participants in a group, highlighting the dynamics of the group interaction process where creative contributions occur.
Group health insurance offers healthcare coverage to members of a defined group, such as employees of a business, union members, or association groups, facilitating access to a comprehensive range of medical services.
Group income refers to a dividend paid by one group company to another within the same corporate structure. These dividends received are not subject to corporation tax.
A process where individuals are interviewed collectively, either to gather opinions or as a method of evaluating potential employees in a collaborative setting.
A Group Legal Services Plan is a program that offers legal services to participants, typically employees of a company, through a prearranged and often prepaid contractual agreement.
Group life insurance is a basic employee benefit under which an employer buys a master policy and issues certificates to employees denoting participation in the plan. Group life is also available through unions and associations. It is usually issued as yearly renewable term insurance although some provide permanent insurance. Employers may pay all the cost, or share it with employees.
Behavior norms applied to group members. Group norms are essential in determining group behaviors and conformity to organizational goals.
The Group of 20 (G-20) is an international forum for the governments and central bank governors from 19 countries and the European Union to discuss policy issues pertaining to the promotion of international financial stability.
Corporate groups under common control can apply for group registration for VAT, allowing all group members to be treated as a single taxable entity.
Group relief is a tax mechanism allowing companies within a 75% ownership group to transfer qualifying losses to other group companies, thus optimizing their overall tax position. From April 1, 2000, group members no longer have to be resident in the UK to qualify for this relief.
A business entity that is part of a larger corporate group, encompassing various companies with shared ownership or control connections, often referred to in relation to subsidiary undertakings.
Computer software that enables collaborative working on a joint project, allowing team members to work together despite being in different locations. Groupware was a precursor to web-based collaborative working systems.
A Growing-Equity Mortgage (GEM) is a type of home loan where the monthly payments increase annually by a predetermined amount. These additional payments are applied directly to the loan's principal, thereby reducing the loan's maturity period faster compared to a standard Level-Payment Mortgage.
Growth accounting is a method used in economics to determine the contribution of different factors (such as labor, capital, and technology) to economic growth.
A growth fund is a mutual fund that primarily invests in growth stocks with the aim of providing capital appreciation for the fund's shareholders over the long term. These funds tend to be more volatile compared to conservative income or money market funds.
Growth rate is a metric that illustrates the amount of change over a period in certain financial characteristics of a company, such as sales revenue or profits. It is usually expressed as a percentage and can be compared to the Retail Price Index or another inflation measure to evaluate the company's real performance.
A growth stock is a type of stock that has exhibited faster than average gains in earnings over recent years and is expected to continue showcasing high levels of profit growth. These stocks often come with higher risks but offer potentially greater returns compared to average stocks.
A guarantee is a formal promise made by a third party, known as a guarantor, ensuring the fulfillment of contractual obligations if the primary party defaults. This mechanism is often used in financial transactions to mitigate risk.
A Guarantee Letter is a document issued by a commercial bank that ensures payment of the exercise price of a client's put option if or when an assignment notice is presented to the option seller (writer).
A certificate issued by a bank or brokerage firm vouching for the authenticity of a person's signature, which may be necessary when stocks, bonds, or other registered securities are transferred from a seller to a buyer.
A plan provided by an employer to assure eligible employees a minimum amount of work or pay during the year. Employees must meet certain requirements such as willingness to change activities or to work overtime when needed.
In the USA, a guaranteed bond is issued by one party with payment guaranteed by another party. This often involves a subsidiary undertaking issuing the bond while the holding company guarantees the payment.
A Guaranteed Income Contract is a financial instrument commonly used in the investment and insurance industries to provide a stable, guaranteed stream of income over a specified period of time.
A Guaranteed Income Contract (GIC) is a financial instrument typically utilized within corporate profit-sharing or pension plans wherein an insurance company guarantees a specific rate of return on invested capital over the contract's duration.
Guaranteed insurability refers to an insurance policy feature that allows an individual to purchase additional life insurance without undergoing a medical examination, under specific conditions, thereby ensuring continued coverage regardless of changes in health status.
A guaranteed mortgage is a type of home loan in which a third-party organization guarantees repayment to the lender in case the borrower defaults. These guarantees are often provided by government agencies, enhancing the chances of loan approval and potentially offering favorable terms to the borrower.
Guaranteed payments for capital refer to payments made to a partner by a partnership, determined without regard to partnership income, specifically for the use of that partner's capital.
A person or entity that guarantees, endorses, or provides indemnity agreements with respect to debts owed by another party. The guarantor ensures the debt will be repaid, and any losses incurred are deductible when sustained.
A guaranty is a legal promise to fulfill another party's debt or contractual obligations if that party fails to do so.
A guardian is an individual assigned with the responsibility of protecting another person or property, either via general duty or legal appointment.
A Guardian Deed is a legal document used for the sale or transfer of real estate by a person appointed by a court to manage the personal affairs or property of an individual who is not capable of such duties.
Guardianship expenses refer to the costs associated with services provided by a guardian for a minor. These expenses are often related to the care and management of the minor's personal and financial affairs, and may be tax-deductible in certain situations.
A guest worker, also known as a foreign worker, is a person who legally enters a nation to fill a temporary labor shortage and is often employed in sectors such as agriculture, construction, and service industries.
A document or tool offering instructions, regulations, and procedures to follow when performing a specific task or series of tasks. Guides help standardize actions and ensure effective execution of processes.
A guild is a medieval organization that functioned as a precursor to modern unions, typically encompassing associations of artisans or merchants. Today, it refers to any association representing the interests and needs of a particular professional or business group.
Habeas corpus is a legal procedure used to determine the legality of an individual's detention or imprisonment. It serves as a critical protection against wrongful detention.
A habendum clause is a section of a deed that specifies the rights and interests being granted to the grantee, beginning with the words 'to have and to hold.'
A person who uses a computer system without authorization, gaining access typically through an Internet connection, often to exploit or manipulate data and systems.
Halal finance refers to financial and banking activities compliant with Islamic law, which prohibits activities involving interest (riba) and certain other unethical practices. It encompasses forms of funding and asset management respecting Sharia principles.
In telecommunications, half duplex is a mode of transmission wherein data can be sent in only one direction at a time. This means that at any given moment, a device can either transmit or receive data, but it cannot do both simultaneously.
Half-life in finance refers to the point in time at which half the principal has been repaid in a mortgage-backed security, including amortization and retirements.
In tax law, the assumption that an asset acquired at any point in the taxable year was placed in service halfway through the year.
Halftone is a printing technique that simulates continuous tone images using dots of varying sizes and spacing. This method is widely used in printing photos and other images in magazines, newspapers, and other print media.
The Halo Effect refers to the cognitive bias where an observer's overall impression of a person influences their feelings and thoughts about that person's specific traits or abilities.
An innovative wage incentive system created by Frederick A. Halsey, designed to enhance worker productivity and address the shortcomings of the piece-rate system.
Hammering the market refers to intense selling of stocks by speculators who believe that prices are inflated and the market is about to drop.
A report issued in 1998 by a committee under the chairmanship of Sir Ronald Hampel, reviewing the implementation of the Cadbury Code and the Greenbury recommendations and combining these into a new Corporate Governance Code.
A handicapped person is an individual who has a physical or mental disability that results in a functional limitation to employment, and/or significantly impairs one or more major life activities.
Handling allowance is a discount or special price offered by a manufacturer to a wholesaler, distributor, or retailer when the manufacturer's product requires special handling. This often compensates for additional work or costs undertaken by the retailer.
A handshake can refer to either a personal physical greeting between two individuals or an exchange of signals between computers or peripherals to establish a communication link.
In real estate brokerage jargon, a handyman special refers to a property that is in need of repairs, often marketed as a fixer-upper. The implication is that the property is a bargain for someone who can accomplish the repairs economically.
The Hang Seng Index (HSI) is an arithmetically weighted index reflecting the performance of the largest companies listed on the Hong Kong Stock Exchange (HKEX).
Hangout refers to the remaining balance of a loan when the term of a loan exceeds the term of the lease of the property securing the loan.
Haram, meaning forbidden by Islamic law, particularly applies to lending or borrowing money at interest. Various schemes enable Muslims to take out loans, such as mortgages, without violating this principle of faith.
The term 'hard' can be used in various contexts to describe things that are not easily broken or deformed, situations that require significant effort, or facts that are concrete and undeniable.
Historically, coin made of precious metal. Nowadays it may refer to any readily available money, whether paper or metal.
A physical or tangible raw material commonly used in industrial processes and traded on commodity markets.
A hard copy is a printed version of information from a computer, contrasting with the information displayed on a screen.
A currency that is widely accepted around the world for international transactions; typically from Western industrialized countries or prominent regional trading blocs.
A hard disk, also known as a drive, is a computer storage medium that uses rigid aluminum disks coated with iron oxide. Hard disks have much greater storage capacity than removable media such as floppy disks and CDs.
A hard disk, also known as a hard drive or HDD, is a data storage device used to store and retrieve digital information using magnetic storage.
A Hard Disk Drive (HDD) is a data storage device used for storing and retrieving digital information using one or more rigid rapidly rotating disks coated with magnetic material.
Hard dollars refer to actual payments made by customers or investors, in contrast to soft money, which may include tax-deductible amounts or funds that don't need to be paid in full. This term is also associated with hard money, which are loans provided with stricter terms.
Durable merchandise such as televisions, appliances, hardware, furniture, or recording equipment.
A hard hat is a rigid helmet typically worn by workers on a job site, providing essential protection from head-related injuries. Often synonymous with workers who wear them, these helmets are crucial for safety in construction and other hazardous environments.
Hard manufacturing involves the use of fixed production equipment designed for large production runs of similar items, representing significant fixed costs and limited adaptability to new products.
Hard money, also known as hard currency or hard cash, can refer to both stable, highly trusted currencies and to gold or coins as contrasted with paper currency.
Hard sell refers to aggressive sales practices that aim to pressure a customer into completing a transaction quickly.
The hard-core unemployed are individuals who either have never had a full-time job or have been unable to find work over an extended period of time. These individuals are typically disadvantaged due to a lack of education and job skills.
A hardship distribution is a withdrawal from a Section 401(k) plan made due to the distributee's immediate and heavy financial needs, not exceeding the amount necessary to satisfy such needs. Examples include medical expenses, post-secondary education fees, and preventing eviction or foreclosure of a principal residence.
Harmonization involves aligning accounting standards and practices to achieve consistent and comparable financial reporting globally.
A harvesting strategy aims to maximize short-term profits from a product by reducing marketing expenditures and other support, while capitalizing on its established market presence before withdrawing it from the market.
A hash total is a control mechanism used by auditors in computer applications to ensure the accuracy and completeness of data. It involves summing numbers that have no practical meaning to detect discrepancies, such as lost or omitted records during processing.
A hatchet man is a company employee responsible for reducing personnel, often tasked with delivering notices of dismissal and communicating terms of severance.
Haulage refers to the charge made by a haulier (haulage contractor) for transporting goods, particularly by road. Additional charges may apply for loading and unloading large quantities of goods.
The Hawthorn Effect refers to the phenomenon wherein individuals modify or improve an aspect of their behavior in response to their awareness of being observed.
Hazard insurance is a form of insurance that protects property owners against damages inflicted by certain risks, such as fires, storms, and other natural disasters.
In technical analysis of the stock market, 'Head and Shoulders' is a chart pattern that analysts utilize to predict a reversal in the trend of a security's price. Typically, the pattern appears as three peaks: the initial and last peaks are the shoulders, and the highest peak in the middle is the head.
Learn about head leases, a primary lease from which sub-leases can be generated. Understand its implications, examples, and frequently asked questions.
A Head of Household tax filing status applies to unmarried taxpayers who maintain a home as the principal residence for a designated dependent. This status offers a lower tax rate than Single filers and provides significant tax benefits.
The top margin of a printed document, which repeats on every page and can include text, pictures, automatic consecutive page numbers, date, and time.
A headhunter, also known as an executive search firm, is a private employment agency that specializes in the recruitment of professional and managerial personnel. These agencies often charge fees ranging up to one-third of the first year's total salary and bonus package for the job to be filled.
Headline Earnings Per Share (HEPS) is a financial metric provided by the Chartered Financial Analyst Society to give a clearer picture of a company's earnings by including specific trading profits and losses while excluding certain non-recurring events.
Headline inflation measures the total inflation within an economy, encompassing a broad scope that includes volatile items such as food and energy prices, offering an overall picture of price trends in the economy.
A UK government body appointed to oversee the health, safety, and welfare of people at work; protect the public from risks arising from work activities; and control the use and storage of dangerous substances.
A Health Care Power of Attorney grants an individual the authority to make medical treatment decisions on behalf of another person when they are unable to do so themselves. This includes decisions regarding the use of extraordinary life support measures.
A part of the Earned Income Credit that is based on health insurance premiums that provide coverage for one or more qualifying children.
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) includes rules to guard both the privacy and security of personal health information. It provides federal protections for personal health information held by covered entities and stipulates a series of safeguards to ensure the confidentiality, integrity, and availability of electronic protected health information.
A Health Maintenance Organization (HMO) is a type of prepaid group health insurance plan that entitles members to the services of participating physicians, hospitals, and clinics with an emphasis on preventive medicine.
A Health Savings Account (HSA) is a type of savings account that lets individuals save for medical expenses tax-free. This account was established by the Medicare Prescription Drug, Improvement, and Modernization Act, which was signed into law by President George W. Bush on December 8, 2003.
