TAILIEUCHUNG - Dictionary of Finantial and Business Terms part 15

Tax free acquisition A merger or consolidation in which 1) the acquirer's tax basis in each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and 2) each seller who receives only stock does not have to pay any tax on the gain he realizes until the shares are sold. Tax haven A nation with a moderate level of taxation and/or liberal tax incentives for undertaking specific activities such as exporting or investing. Tax Reform Act of 1986 A 1986 law involving a major overhaul of the . tax code. Tax shield The reduction in. | 141 Dictionary of Finantial and Business Terms Lico Reis - Consultoria L nguas licoreis@ Tax free acquisition A merger or consolidation in which 1 the acquirer s tax basis in each asset whose ownership is transferred in the transaction is generally the same as the acquiree s and 2 each seller who receives only stock does not have to pay any tax on the gain he realizes until the shares are sold. Tax haven A nation with a moderate level of taxation and or liberal tax incentives for undertaking specific activities such as exporting or investing. Tax Reform Act of 1986 A 1986 law involving a major overhaul of the . tax code. Tax shield The reduction in income taxes that results from taking an allowable deduction from taxable income. Tax swap Swapping two similar bonds to receive a tax benefit. Tax deferral option The feature of the . Internal Revenue Code that the capital gains tax on an asset is payable only when the gain is realized by selling the asset. Tax-deferred retirement plans Employer-sponsored and other plans that allow contributions and earnings to be made and accumulate tax-free until they are paid out as benefits. Tax-timing option The option to sell an asset and claim a loss for tax purposes or not to sell the asset and defer the capital gains tax. Taxable acquisition A merger or consolidation that is not a tax-fee acquisition. The selling shareholders are treated as having sold their shares. Taxable income Gross income less a set of deductions. Taxable transaction Any transaction that is not tax-free to the parties involved such as a taxable acquisition. TBA to be announced A contract for the purchase or sale of a MBS to be delivered at an agreed-upon future date but does not include a specified pool number and number of pools or precise amount to be delivered. Technical analysis Security analysis that seeks to detect and interpret patterns in past security prices. Technical analysts Also called chartists or technicians analysts who .

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