An option that is bought or sold by itself; in other words, the option position is not hedged by another offsetting position. An outright option can be either a call or a put. Most option trades involve outright options. The opposite strategy to purchasing outright options is a spread trade strategy, which involves purchasing one option and selling another option of the same class but of a different series.
A registered trust in which investors purchase units from a fixed portfolio of equities, which are chosen and managed by a professional money manager. Securities in the trust remain there for the life of the trust, which is most often one year. At that point they can either be liquidated at market value or rolled over into a newer, current version of the trust. Taobiz explains Equity Unit Investment Trust Because investors purchase units of the trust, this investment allows investors to diversify and participate in dividends and capital gains without purchasing a large number of the equities themselves. There are also various types of equity trust products, allowing investors to choose an investment that closely matches their own risk tolerance and investment goals.
The amount of tax paid per dollar of the assessed property value. This is called the mill rate because the number is expressed in mills - one mill is 1/10th of a cent ($.001).
A cross-border European stock exchange, originally created in 2000 from the merger of the Amsterdam, Brussels and Paris stock exchanges. In 2001 and 2002, respectively, Euronext acquired the London International Financial Futures and Options Exchange (LIFFE) and the Portuguese stock exchange, Bolsa de Valores de Lisboa e Porto (BVLP), in order to become one of the world's largest exchanges. On April 4, 2007, Euronext completed their agreed merger with the NYSE Group, resulting in the formation of NYSE Euronext. Taobiz explains Euronext As of 2008, NYSE Euronext manages a variety of exchanges, located in six countries. The company operates the world's most liquid exchange group, with nearly 4,000 listed companies, which represents a total market capitalization of approximately $30.5 trillion.
A deduction of automobile expenses for people using their vehicles for business, charity, moving, medical or any other purpose that qualifies for a deduction. There are different categories of purposes for deductible automobile-expenses, each of which has a specific cent-per-mile deduction. Careful documentation of the mileage and the reason for the trip is essential for audit-proofing your taxes.
Using one's ethical principles as the main filter for securities selection. Ethical investing depends on an investor's views; some may choose to eliminate certain industries entirely (such as gambling, alcohol, or firearms) or to over-allocate to industries that meet the individual's ethical guidelines. Ethical investing is sometimes used interchangeably with socially conscious investing, but socially conscious funds typically have one overarching set of guidelines that is used to select the portfolio, whereas ethical investing brings about a more personalized result. Taobiz explains Ethical Investing Ethical investing gives individuals the power to allocate capital toward companies that are in line with their personal views, whether they are based on environmental, religious or political precepts. Investors should keep in mind that "ethical" does not imply "outperform". A good way to start with an ethical investing policy is to write down the areas you want to avoid as well as where you want to see your money invested. From there you can come up with an asset allocation plan and begin researching individual securities and funds.
A type of special investment portfolio in which an investor, with or without the aid of an investment advisor, invests solely in exchange traded funds (ETFs). The composition of each ETF class is initially based on a preselected asset allocation model, and will periodically need to be rebalanced in response to changes in market values. Taobiz explains ETF Wrap Common asset allocation models are 100% equity, 100% fixed income or a balanced model, which contains both fixed income and equity. The choice of model depends on an investor's age, tolerance to risk, income, goals and other personal factors. Investors can choose to manage an ETF wrap themselves in a non-discretionary account, or elect to have a professional do so on their behalf in a discretionary account. ETF wraps are beneficial due to their low expense ratios when compared to other mutual fund wraps. In addition, they offer investors intraday trading, tax efficiency and more. One general problem with these wraps is the cost of trading ETFs. The sale and purchase of ETFs is no different than purchasing normal stock in that commission fees are charged for every transaction; unless the investor is with a discount brokerage, performing frequent trades will be costly.
A person who is claimed as a dependent when filing year-end tax forms. Such a dependent allows a taxpayer to qualify for the dependency exemption. A member of household can be a relative or a non-relative, but in order for a non-relative to be claimed as a member of household, he or she must meet the relationship requirements outlined by the IRS. To be considered a member of household, a person must be at least one of the following: 1. Lineal descendant (child, grandchild, great-grandchild; step-lineal descendants such as stepchildren are included)2. Brother or sister (includes stepbrothers/stepsisters and half-brothers/half-sisters)3. Lineal ancestor (parent, grandparent, great-grandparent; step-lineal ancestors are included)4. Niece, nephew, aunt or uncle (not including relations by marriage)5. In-law (father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law and sister-in-law)6. Anyone else who is neither related nor married to you, but who lives in your home for the entire year