What is a Dynasty Trust? A dynasty trust is a long-term trust established to convey wealth from generation to generation. It does this while avoiding transfer taxes such as the gift tax, estate tax, or generation-skipping transfer tax (GSTT) during the duration of the trust’s assets. The longevity of the […]
What Is an Unrealized Gain? An unrealized gain represents the day-to-day increases (or decreases) in an asset’s value, such as a stock. However, until the stock is sold for cash, the gain remains unrealized. As a result, an unrealized gain is often referred to as a paper profit. Conversely, an […]
What Are Weekly Options? Weekly options function exactly like monthly options, with the exception that they only exist for eight days. They are released every Thursday and expire eight days later on Friday with adjustments for holidays. Previously, investors could choose from 12 monthly expirations on the third Friday of […]
What Is an Option Premium? An option premium is the market price an investor must pay to purchase an options contract from a seller or writer. In other words, it is the amount paid by an option buyer to an option seller for an option contract. An option contract is […]
What Is a Retention Bonus? A retention bonus is a specific payment or reward offered in addition to an employee’s normal compensation. It is given as an incentive to retain a key individual on the job. Often, this occurs during a particularly critical business cycle, such as a merger or […]
FAVR: What Is a Fixed and Variable Rate Allowance? A FAVR plan reimburses employees using their own car for business purposes with a combination of a monthly allowance and mileage reimbursement. The fixed and variable rate reimbursement is a method of compensating workers who use their personal or leased automobiles […]