An arrangement in which the value-added tax (VAT) due on second-hand goods sold is calculated based on the trader's margin, rather than the total selling price.
A market for investors to buy and sell shares in new and developing companies. These markets provide companies with access to new sources of finance and are subject to fewer regulatory requirements compared to main markets.
A secondary auditor is an auditor assigned to audit the financial statements of a subsidiary company, who is not the same auditor as the one auditing the parent company's financials.
A secondary beneficiary is an individual or entity designated to receive assets or benefits if the primary beneficiary is unable or unwilling to do so. Often used in insurance policies, estate planning, and retirement accounts.
A secondary boycott refers to a union's effort to exert pressure on an employer by preventing the usage, purchase, or transportation of products, goods, or services related indirectly to a primary employer involved in a labor dispute.
Secondary data refers to information collected for a purpose other than the current research objective. This data is typically gathered by other entities such as government agencies, market research firms, or academic institutions.
A secondary distribution refers to the public sale of previously issued securities held by large investors, such as corporations, institutions, or affiliated persons, rather than a new issue where the seller is the issuing corporation.
Secondary financing refers to additional loans or mortgages taken out on a property that already has an existing or primary mortgage. This type of financing is often used to cover down payments, renovations, or other expenses.
A secondary market is a marketplace where investors buy and sell securities they already own. It differs from the primary market, where securities are initially issued. The secondary market provides liquidity and enables price discovery for traded assets.
A secondary market is a crucial component of the financial market where securities are traded among investors after being initially offered to the public on the primary market.
The secondary mortgage market is a market for buying and selling mortgages that have already been issued or originated, providing significant liquidity to the mortgage market.
A secondary offering, also known as a secondary distribution, is the sale of new or closely held shares of a company by investors, usually institutions, who are selling off their positions entirely or part of it.
Secondary storage devices are computer storage locations for data not currently being accessed. They provide readily accessible file retrieval and security against data loss.
A secret reserve or hidden reserve is an account or fund that is not disclosed to stakeholders, often used by companies to smooth earnings over time.
Section 1031 of the Internal Revenue Code addresses tax-free exchanges of certain properties, primarily real estate, provided specific conditions are met.
Section 1231 of the Internal Revenue Code deals with assets used in a trade or business, providing for capital gains treatment on gains and ordinary loss treatment on losses from such assets.
Section 167 of the Internal Revenue Code details the rules and methodology regarding depreciation deductions for assets used in a trade or business or held for the production of income.
A section of the Internal Revenue Code of 1986 (IRC) that allows the cost of capital improvements for qualifying personal property to be deducted in the year of acquisition rather than being recovered over time through depreciation.
A Section 401(k) Plan allows an employee to contribute pretax earnings to an individual account, invested in various financial instruments, accumulating tax-deferred until withdrawal.
A specific kind of nonprofit organization in the United States exempted from federal income tax under section 501(c)(3) of the Internal Revenue Code. These organizations must fulfill certain criteria related to purpose, earnings, lobbying, and political activities.
Section 8 Housing refers to privately-owned rental units that participate in the low-income rental assistance program created by the 1974 amendments to Section 8 of the 1937 Housing Act. Under this program, landlords receive rent subsidies on behalf of qualified low-income tenants, allowing these tenants to pay a limited proportion of their incomes towards rent.
A section of land, as defined in the Government Rectangular Survey, is one square mile. This system divides land into a grid where each township contains 36 sections, each being one square mile or 640 acres in area.
A sector refers to a distinct part of the economy, stock market, or specific division in computer storage, each sharing common characteristics.
A secular trust is a variation of an irrevocable trust primarily used in nonqualified deferred compensation plans for executives, offering greater security as its assets are not subject to the claims of creditors.
A secured bond is a type of bond backed by some form of collateral such as a mortgage or other lien. The specifics of the security are detailed in the bond agreement, known as an indenture. Unlike secured bonds, debentures (unsecured bonds) are not backed by collateral.
A secured creditor holds a financial interest, either through a fixed or floating charge, over the assets of a debtor, providing a level of security for the creditor's investment by granting the right to seize or sell these assets if the debtor defaults.
Debt obligation, including bonds, that is guaranteed by the pledge of assets or other collateral.
A secured liability is a debt against which the borrower has pledged sufficient assets as collateral to protect the lender in case of default.
A transaction based on a security agreement that concerns a security interest, whereby personal or real property is pledged as collateral for performance or for a debt.
Financial instruments that represent ownership or debt and provide the holder with a right to receive financial returns or an interest in the profits or assets of an enterprise.
The first law enacted by Congress to regulate the securities markets, approved May 26, 1933, as the Truth in Securities Act.
A securities analyst is an individual who performs investment research and examines the financial condition of companies and industries to provide investment recommendations.
Organized, national exchanges where securities, options, and commodities futures contracts are traded by members for their own accounts and for the accounts of customers.
The Securities and Exchange Commission (SEC) is a U.S. government agency that oversees the securities markets and protects investors by enforcing securities laws and regulations.
The Securities and Exchange Commission (SEC) is a federal agency empowered to regulate and supervise the selling of securities, prevent unfair practices on security exchanges and over-the-counter markets, and maintain a fair and orderly market for investors.
The SEC is a key regulatory body in the United States that enforces securities laws to protect investors and ensure fair and efficient markets.
The Securities Exchange Act of 1934 is a landmark piece of legislation that governs the securities markets in the United States. Enacted on June 6, 1934, this act was designed to regulate and oversee the secondary trading of securities (stocks, bonds, and debentures) to ensure fairness and transparency in financial markets. The act explicitly outlaws misrepresentation, fraud, manipulation, and other abusive practices related to the issuance and trading of securities. To enforce the provisions of both the Securities Act of 1933 and the Securities Exchange Act of 1934, the legislation established the Securities and Exchange Commission (SEC).
The Securities Investor Protection Corporation (SIPC) is a nonprofit corporation supported by its membership of securities brokers and dealers. It was developed to protect their customers and to promote confidence in the securities markets. In principle, SIPC provides certain amounts of insurance on cash and securities left on deposit in a brokerage account. This insures investors against the failure of the brokerage firm but not against a decline in the value of securities.
A securities loan involves the loaning of securities by one broker to another, typically to facilitate a short sale or, in a broader context, can refer to a loan collateralized by marketable securities.
Securities markets are venues where securities are bought and sold, encompassing both organized exchanges and over-the-counter (OTC) markets. These markets facilitate the flow of capital from investors to companies, enabling economic growth and liquidity.
Securitization is the process of turning assets into securities by packaging asset cash flows into tradable financial instruments. It involves an originator, a special purpose vehicle, and investors.
Security refers to various forms of assurances provided to lenders or measures taken in financial and e-commerce contexts to ensure the integrity, privacy, and authenticity of transactions or assets.
A security deposit is a nontaxable cash payment received by a landlord to be held during the term of a lease to offset damages incurred due to actions of a tenant.
A Security Interest represents a legal claim or right granted to a lender or secured party over the borrower's property (collateral) which secures the payment or performance of an obligation.
Evaluation of the credit and investment risk of a securities issue by commercial rating agencies.
Essential insights into 'See [Business Software Package]', covering its definition, applications within business environments, relevant examples, FAQs, related terms, and resources for further study.
Essential initial funding that enables the research and development required to develop a persuasive and accurate business plan before establishing a new company.
Seed money is the initial capital used to start a business, often provided by venture capitalists, and can take multiple forms including subordinated loans, convertible bonds, or preferred stock.
Segment margin is a profitability measure used to evaluate the financial performance of a business segment, such as a division, territory, or product line. It equals segmental revenue minus related product costs and traceable operating expenses attributable to that segment.
Segment reporting is the presentation of financial information in an entity's annual report for different operational segments that meet specific criteria, ensuring transparency and insight into diverse business activities.
Segmental reporting entails the disclosure in annual accounts and reports of financial results of major operating and geographic segments within a diversified group of companies. This practice offers investors insight into the profitability, risk, and growth prospects for individual segments of a business.
A marketing strategy in which a company divides its broad target market into subsets of consumers who have common needs, and then designs and implements strategies to target them.
Segregation of duties (SoD) is an internal control concept designed to prevent error and fraud by ensuring that no single individual has control over all aspects of a critical transaction or operation.
An abbreviation for the Stock Exchange of Hong Kong, a key financial hub for trading securities and providing a marketplace for investors and companies.
Seisin refers to the legal possession of a property by an individual who asserts ownership, typically in the form of a fee simple estate, life estate, or other saleable interest.
Selective Credit Controls represent the ability of the Federal Reserve Board (FRB) to establish specific terms and conditions for various credit instruments, particularly affecting the trading of securities in the stock market through margin requirements.
Selective distribution is a distribution strategy where a manufacturer restricts the number of outlets that can sell its products to those that meet specific criteria. These criteria can include agreeing to sell the product at a minimum price, committing to regular patronage, or meeting other specific requirements set by the distributor or manufacturer.
Understanding the concept of self supply in the context of Value Added Tax (VAT) when dealing with commercial buildings used for exempt purposes.
A Self-Amortizing Mortgage is a mortgage designed to be paid off entirely through regular principal and interest payments over the loan term, without requiring a large lump sum payment at the end.
A system that enables taxpayers to assess their own income tax and capital gains tax liabilities for the year. Since 1996-97, self-assessment has become a significant component of the UK tax return system, encapsulating details on taxable income, chargeable gains, and claims for personal allowances.
A scheme for the self-assessment of tax by companies introduced in the UK for all companies with an accounting period ending after 1 July 1999. This includes the timely submission of tax returns and payment of tax liabilities.
A Self-Directed IRA is an Individual Retirement Account that allows the account holder to actively manage and make investment decisions, distinguishing it from standard IRAs managed by institutions.
Self-employed individuals work for themselves, without a formal employer, and include sole proprietors and partners in partnerships. They shoulder all business risks and responsibilities, paying self-employment tax in addition to income tax on their net income.
Individuals who independently operate their trades or businesses and are taxed based on their profits rather than through PAYE, with unique National Insurance contributions compared to employees.
The Self-Employment Contributions Act (SECA) taxes are imposed on the net earnings of individuals from self-employment. These contributions fund Social Security and Medicare programs for self-employed individuals.
The Self-Employment Contributions Act (SECA) is a federal law in the United States that imposes a tax on the income of self-employed individuals for the purposes of funding Social Security and Medicare programs.
Self-employment income refers to the earnings generated by individuals who work for themselves rather than being employed by a company or organization. This income is subject to Social Security taxes if the net profit from the trade or business is at least $400 for the year. In some cases, earnings less than $400 might still be considered for Social Security purposes.
The Self-Employment Individuals Retirement Act, commonly known as the Keogh Plan, is a retirement plan designed for self-employed individuals and small business owners, allowing them to save for retirement with tax-deferred contributions.
A Self-Employment Retirement Plan, also referred to as a Keogh Plan, is a tax-deferred pension account specifically designed for self-employed individuals and unincorporated businesses. It enables them to set aside a portion of their income for retirement.
Provision for Social Security (old-age, survivor's, and disability insurance) and Medicare (hospital insurance) for self-employed individuals. The rate is equal to the combined rates paid for Social Security by both employer and employee.
A self-fulfilling prophecy is a prediction that causes itself to become true due to the behavior it inspires in people. For instance, believing that a political candidate will win an election may encourage enough people to vote, thus enabling the candidate's victory.
Self-help refers to efforts by a landlord to remedy a tenant’s default on the lease without resorting to legal proceedings. This method is highly controversial and generally not supported by legal frameworks in most states.
Self-image is the conceptualization, idea, or mental image one has of oneself. It includes various perceptions about one's abilities, appearance, and character.
Self-insurance refers to the process of protecting against loss by setting aside one's own money rather than purchasing insurance from a third party. This can be systematically done by establishing a reserve fund.
A self-tender offer is a strategic financial maneuver used by companies to purchase a portion of their own stock from shareholders, often to thwart hostile takeover attempts.
A sell-off refers to the rapid selling of securities due to underlying panic or to avoid further declines in prices, often resulting in a sharp decline in the market.
Seller financing, also known as owner financing, is a method in which the seller of a property provides a loan to the buyer for the purchase of the property, as opposed to the buyer obtaining a mortgage through a third-party lender. This is often used when traditional lender financing is unavailable or less attractive.
A seller's market is a situation where demand for a security or product significantly exceeds its supply, leading to rising prices and allowing sellers to set both prices and terms of sale.
A Selling Agent, also known as a Selling Broker, is a licensed real estate professional who represents the buyer in a real estate transaction.
A selling climax refers to a sudden plunge in security prices when investors, driven by panic, simultaneously decide to dump their holdings. This event can sometimes signal the bottom of a bear market, after which the market may start to rise.
Selling overhead encompasses the expenses incurred by an organization in carrying out its selling activities, which include salaries of sales personnel, advertising costs, sales commissions, and other related expenses.
Selling Price Variance is a financial metric that measures the difference between the actual selling price of a product and its budgeted or standard selling price, multiplied by the actual number of units sold.
Selling short involves selling securities, commodities, or foreign currencies not actually owned by the seller, with the hope of repurchasing them later at a lower price to earn a profit.
Selling short against the box is a strategy wherein an investor sells a stock they already own but have kept in a brokerage firm's safekeeping, known as the 'box,' to defer capital gains to the following tax year.
SG&A expenses are essential for the daily operations of a business but do not include production costs. These expenses are tracked on a company's profit and loss statement and cover a variety of areas such as sales salaries, advertising, office expenses, and more.
Semi-monthly refers to an event or action that occurs twice each month. This term is often used in payroll and billing cycles.
An expense containing both fixed and variable cost elements, impacting overall costs depending on the level of business activity.
Semi-variable costs, also known as mixed costs, are costs that contain both fixed and variable components. They change in response to changes in volume but by less than a proportionate amount.
Semiannual refers to an event or action occurring twice a year, often at six-month intervals. It is synonymous with the term 'biannual.'
A semiconductor is a material with conductivity between that of an insulator and most metals, either due to the addition of impurities or because of its inherent atomic structure. It forms the foundation of modern electronic devices.
Senior capital refers to the financial contributions in the form of secured loans provided to a company, which are prioritized for repayment before other types of financial claims during liquidation.
Generally someone age 65 or over. Discounts on goods and services, special tax rules, and additional privileges often benefit senior citizens.
Loans or debt securities that have priority claim over junior obligations and equity on a corporation's assets in the event of liquidation.
A senior mortgage, also known as a first mortgage, refers to a loan that has priority over other loans or claims against the property in the event of default. It occupies the primary lien position on the property.
Senior refunding refers to the process of replacing securities maturing in 5 to 12 years with issues that have original maturities of 15 years or longer. Objectives can include reducing the bond issuer's interest costs, consolidating several issues into one, or extending the maturity date.
A security that has claim prior to a junior obligation and equity on a corporation's assets and earnings. Senior securities are repaid before junior securities in the event of liquidation. Debt, including notes, bonds, and debentures, is senior to stock; first mortgage bonds are senior to second mortgage bonds; and all mortgage bonds are senior to debentures, which are unsecured.
A method based upon length of service for determining employment advantages, crucial for promotions and layoffs, and often strongly advocated by unions.
A sensitive market refers to a financial market easily swayed by the announcement of positive or negative news. Such a market's fluctuations are often more pronounced than those of a market in which investors exhibit greater confidence in the price outlook.
A method used in decision making to evaluate the impact of variations in key variables on projected outcomes, helping to identify the degree of risk associated with a decision.
Sensitivity Analysis is a financial modeling tool used to predict the outcome of a decision given a certain range of variables.
