Types and Forms of Limited Power of Attorney (LPOA)

Types of Limited Power of Attorney (LPOA) for Portfolio Management 2. Non-Discretionary LPOA: In contrast to a discretionary LPOA, a non-discretionary LPOA requires the attorney-in-fact to obtain the investor’s approval for each investment decision and trade. The attorney-in-fact can provide recommendations and advice to the investor, but the final decision …

Available Balance And How It Differs From Current Balance

What is Available Balance? Available balance refers to the amount of money in a bank account that is currently accessible for withdrawal or use. It represents the funds that are immediately available for the account holder to spend or transfer. When a transaction is made, such as a purchase or …

Idle Time And Its Impact On Businesses

The Concept of Idle Time Causes of Idle Time There are various factors that can contribute to idle time in a business. Some common causes include: Machine breakdowns or maintenance: When equipment malfunctions or requires routine maintenance, it can result in downtime and idle time. Waiting for materials or supplies: …

What Are Property Rights and Why They Matter

The Importance of Property Rights Property rights play a crucial role in any society and economy. They are the legal rights that individuals or entities have to own, use, and dispose of property. These rights are essential for the functioning of a market economy and the overall well-being of a …

Venture Capital-Backed IPO: Explained, Process, Example

Venture Capital-Backed IPO: Explained, Process, Example A venture capital-backed IPO is a type of initial public offering (IPO) where a company raises capital by selling its shares to the public for the first time with the support of venture capital investors. Before the IPO, the company typically goes through several …

Recharacterization And Its Mechanics

What is Recharacterization? Recharacterization is a term used in the field of retirement planning to describe the process of undoing a contribution or conversion made to an individual retirement account (IRA) or Roth IRA. It allows individuals to correct or reverse certain financial decisions related to their retirement savings. Definition …

Understanding Depth of Market and How to Utilize DOM Data

What is Depth of Market? Depth of Market (DOM) is a trading tool that provides valuable information about the current supply and demand levels for a particular financial instrument. It displays the number of buy and sell orders at different price levels, allowing traders to see the liquidity and potential …

Void Transaction: How It Works, Examples, vs Refund

Void Transaction: How It Works A void transaction is a type of transaction that is cancelled before it is completed. It is different from a refund, as a refund occurs after a transaction has been completed. Voiding a transaction essentially erases it from the record, as if it never happened. …

The Basics Of A Living Trust

What is a Living Trust? Key Features of a Living Trust There are several key features of a living trust that distinguish it from other estate planning tools: Revocable: A living trust is revocable, which means you can make changes to it or even revoke it entirely at any time …

Loan Commitments: Definition, Process, And Types

What is a Loan Commitment? A loan commitment is a formal agreement between a lender and a borrower that outlines the terms and conditions of a loan. It is a promise from the lender to provide a specific amount of money to the borrower, subject to certain conditions being met. …

Money: Properties, Types, And Uses

The Importance of Money in the Economy Money plays a crucial role in the functioning of any economy. It serves as a medium of exchange, a unit of account, and a store of value. Without money, the exchange of goods and services would be extremely difficult and inefficient. As a …

Incremental Cash Flow And Its Calculation Methods

Definition and Importance Incremental cash flow refers to the net increase or decrease in cash flow that is directly attributable to a specific business decision or project. It is a crucial concept in financial analysis and decision-making, as it helps assess the financial viability of potential investments or projects. When …

Tax-Loss Harvesting: Definition and Example

Tax-Loss Harvesting: Definition and Example Tax-loss harvesting is a strategy used by investors to minimize their tax liability by selling investments that have experienced a loss. This allows them to offset capital gains and reduce their overall taxable income. When an investor sells an investment at a loss, they can …

Autonomous Expenditure And Its Impact On Economic Growth

What is Autonomous Expenditure? Autonomous expenditure refers to the level of spending in an economy that is independent of changes in income or output. It represents the amount of spending that would occur even if there were no changes in income or output levels. Autonomous expenditure is a key concept …

Understanding Producer Price Index (PPI) Calculation Methods

Calculation Methods for Producer Price Index The Producer Price Index (PPI) is an important economic indicator that measures the average change in prices received by domestic producers for their output over time. It is used to track inflationary pressures in the economy and provides valuable insights into the cost of …

Quoted Price And Its Significance In Business

Definition of Quoted Price A quoted price refers to the price at which a product or service is offered by a seller to a potential buyer. It is a specific price that is provided in response to a request for pricing information. The quoted price is typically communicated in written …

IRS Publication 970 Tax Benefits for Education Overview

Overview of IRS Publication 970 IRS Publication 970 is a comprehensive guide that provides information on tax benefits for education. It is a valuable resource for students, parents, and educational institutions to understand the tax provisions related to education expenses. The publication covers various topics, including the American Opportunity Credit, …

Categories IRS

Voluntary Conveyance And Its Process

What is Voluntary Conveyance? Unlike involuntary conveyance, which occurs through legal actions such as foreclosure or eminent domain, voluntary conveyance is a consensual transaction between the parties involved. It requires the grantor to have full legal capacity and the intention to transfer the property willingly. Types of Voluntary Conveyance There …

Krugerrands Gold Coins Minted by South Africa

What are Krugerrands Gold Coins? Krugerrands Gold Coins are a type of gold bullion coin that is minted by South Africa. They are named after Paul Kruger, the former president of the South African Republic, and feature his portrait on the obverse side of the coin. These coins are made …

Tax Relief: How It Works, Different Types, And Real-Life Examples

What is Tax Relief and How Does It Work? Tax relief refers to any measure taken by the government to reduce the tax burden on individuals or businesses. It is designed to provide financial assistance and support to taxpayers who may be facing economic hardship or other challenges. There are …

Managed Account Definition and How It Works Vs Mutual Funds

What is a Managed Account? A managed account is a personalized investment portfolio that is managed by a professional money manager on behalf of an individual investor. Unlike mutual funds, which pool money from multiple investors to invest in a diversified portfolio, a managed account is tailored to the specific …

Iceberg Orders: How To Spot And Identify Them

What are Iceberg Orders? An iceberg order is a type of trading order that is designed to conceal the full size of a large order. It is named after the analogy of an iceberg, where only a small portion is visible above the water while the majority remains hidden beneath …