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Financial terms in "Tax"

1. Inheritance Tax

2. 1098-E Form

3. W-2AS Form

4. Tax holiday

5. stretch annuity

6. generation-skipping transfer

7. Medicare tax

8. disqualifying income

9. 1120-PC Form

10. LLC

11. Low-Income Housing Tax Credit (LIHTC)

12. Schedule K-1

13. inclusion amount

14. IT

15. agency security

16. tax threshold

17. marriage penalty

18. Internal Revenue Service

19. pre-tax rate of return

20. 1040-ES Form

21. 1040 Form Schedule C

22. property assessment

23. withholding allowance

24. 457 plan

25. Internal Revenue Code

26. Registered Retirement Savings Plan

27. Private Letter Ruling

28. 1120-IC-DISC Form Schedule Q

29. stimulus package

30. tax deposit certificate

31. Form 1065

32. Marginal tax rate

33. Salary Reduction Simplified Employee Pension Plan

34. abatement

35. anti-dumping duty

36. 1040 Form Schedule EIC

37. filing status

38. Interest Equalization Tax (IET)

39. Pay-As-You-Go

40. HUD-1 statement

41. locked in

42. 1040-X Form

43. annuitant

44. fixed and variable rate allowance (FAVR)

45. ad valorem

46. 940-B Form

47. tax-free

48. gross

49. assignment of income

50. nominee distribution

51. Employee Retirement Income Security Act of 1974

52. Holding period

53. tax-exempt commercial paper

54. conduit theory

55. U.S. Government Agency Security

56. 1099-C Form

57. 1040-C Form

58. wash sale rule

59. Property Tax

60. Dependent

61. mutual improvement certificate

62. tax accounting

63. pretax

64. 1040 Form Schedule E

65. taxed

66. Zero-Rated

67. 1120-RIC Form

68. W-9 Form

69. constructive receipt

70. zero-rating

71. accumulated earnings tax

72. educator expenses deduction

73. duty

74. franked income

75. enterprise zone

76. revenue neutral

77. 408(k) plan

78. 1120-F Form Schedule P

79. deferred account

80. amended return

81. statutory stock option

82. 1120-SF Form

83. IRD number

84. housing bond

85. Output Tax

86. interperiod income tax allocation

87. tax expense

88. Excise tax

89. Tax-deductible

90. carryback

91. Bypass trust

92. negative carry

93. settlement sheet

94. Enterprise Investment Scheme


96. deferred tax asset

97. child and dependent care credit

98. Kiddie tax

99. mortgage credit certificates (MCC)

100. property inventory

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Featured term of the day

Definition / Meaning of

Call Option

Categories: Options, Investing and Trading, Stocks, Legal, ,

Buying a call option gives you, as owner, the right to buy a fixed quantity of the underlying product at a specified price, called the strike price, within a specified time period. For example, you might purchase a call option on 100 shares of a stock if you expect the stock price to increase but prefer not to tie up your investment principal by investing in the stock. If the price of the stock does go up, the call option will increase in value. You might choose to sell your option at a profit or exercise the option and buy the shares at the strike price. But if the stock price at expiration is less than the strike price the option will be worthless. The amount you lose, in that case, is the premium you paid to buy the option plus any brokerage fees. In contrast, you can sell a call option, which is known as writing a call. That gives the buyer the right to buy the underlying investment from you at the strike price before the option expires. If you write a call, you are obliged to sell if the option is exercised and you are assigned to meet the call.

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