An 83(b) election is a provision of the federal tax code that allows a recipient of restricted stock (typically a founder or employee of a startup company) to pay income tax on the value of the stock when it is first granted rather than when it is...
A pure holding company is an entity that exists solely to own shares or equity in other companies. Its primary function is to hold controlling stakes in one or more subsidiary companies without engaging in any business operations of its own. The pure...
A DRIP stock refers to a stock participating in a Dividend Reinvestment Plan (DRIP). DRIP programs allow investors to automatically reinvest the cash dividends they earn from a stock back into additional shares of that same company. Rather than...
The standard deviation is a statistic that measures the dispersion of a dataset relative to its mean. It is calculated as the square root of the variance. The standard deviation is defined as the square root of the variance based on the deviation of...
However, the two companies do not only differ in terms of recent share price movements. Additionally, there are differences in recent growth momentum and expected growth over the next few years. I believe Apple is a good company. As a result,...
An emergency fund is a money saved to cover any financial emergencies or unexpected expenses that may arise. Unexpected car repairs, medical bills, unemployment or other income loss, property damage, or family emergencies are examples of unplanned...
Although helicopter money is an unconventional alternative to quantitative easing, both aim to increase consumer spending and inflation. While helicopter money expands the monetary supply by distributing large amounts of currency to the public,...
Capital gains refer to the profit made from selling an asset, such as shares in a company, for more than its original purchase price. For shareholders, capital gains occur when the value of the shares they own increases, and they sell those shares at...
Stock dividends can lead to dilution of the value of existing shares, but it's important to understand how this works. When a company issues a stock dividend, it distributes additional shares to its existing shareholders instead of paying out cash....