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Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal FinancePersonal BankingPersonal DebtHome RelatedTax FormsSmall BusinessIncomeInvestmentsIRS Rules and PublicationsPersonal LifeMortgage
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

What is the foreign corrupt practices act?

The Foreign Corrupt Practices Act attempts to reduce the possibility that a corporation with American affiliations will engage in the bribery of foreign officials. The act was created in 1977 and has since been amended and expanded several times. The SEC and the Department of Justice are both responsible for enforcing the FCPA, which is a law designed to prevent US-based companies from engaging in corrupt practices abroad. Continue reading...

What is Credit Counseling?

Credit counselors can negotiate debt management strategies with lenders on behalf of individuals with debt problems, as well as providing behavioral financial habit construction counseling. Debtors seek out credit counselors to find out what their options are to get out of debt and to get some coaching during the process. Credit counselors can be certified through several accredited institutions who are overseen by the Department of Justice in the United States, and they may be part of a non-profit organization, lending institution, or independent financial practice. Continue reading...

Who Establishes a 401(k)?

Employers make the decision to establish a 40(k), but it has to be good enough for employees to want to participate. An employer is responsible for establishing a 401(k) and for overseeing it as the sponsor and fiduciary. A self-employed individual can also establish an Individual 401(k), which has the same contribution limits and requires none of the testing or auditing of a regular plan. Other options for work-site retirement plans are SIMPLE IRAs, SEP IRAs, and various kinds of profit-sharing and deferred compensation arrangements. Continue reading...

Can I Withdraw Money From My Cash-Balance Plan?

It’s not likely that a cash-balance plan will allow for early withdrawals. Generally speaking, you can’t withdraw money from a Cash-Balance Plan before you retire unless it is to roll over assets to a new employer’s plan or a personal IRA. Once the money is in another account, you could potentially have full access to it, minus the 10% IRS penalty if you’re under 59 ½. Loans from a cash balance plan may be permitted if they abide by the same rules as 401(k) loans — and if the IRS and the DOL will allow you to consider your vested amount in your hypothetical account as adequate collateral. Continue reading...

What is a BitLicense?

A BitLicense is an informal name for the New York state license required of cryptocurrency businesses to operate within the state. While a lot of cryptocurrency transactions can and do happen “off the grid,” many companies working in cryptocurrency choose to register for licenses to do business and to comply with relevant state and federal regulations and reporting requirements. Different states have different requirements for the businesses that operate within them. In New York state, the applicable license has come to be called the BitLicense. Continue reading...

What is a market-on-close order?

A market-on-close order is used to execute a trade at the last possible moment before the market closes for the day. This may be an order to sell or buy. Market-on-close orders are instructions to execute a trade just before the market closes for the day, at the best price available at the time. The exchange will actually settle all of the market-on-close orders at the same price. Why would an investor enter this kind of trade order? Continue reading...

What can I find out about hedge funds?

Hedge funds have historically been very secretive. They still mainly fall under Regulation D and private-placement laws, but their reporting requirements have been slightly expanded after the Dodd-Frank Act in 2010. Now, they are a little more transparent, but not fully. Up until the Dodd-Frank Act, it was basically impossible to know what hedge funds were investing in and who was involved. Hedge fund managers and their investment banks were under no obligation to report the holdings, and they generally avoided leaking any information about their market positions for fear of damaging their advantages. Continue reading...

What is a Run Rate?

Run rate is a term that can be applied to a certain type of accounting and management estimation or to the depletion of equity options. The first kind is when a current metric (such as sales revenue for a quarter) is assumed to extend out to the end of the year or accounting period for estimation or valuation purposes. The second kind uses the average dilution from the past three years, generally, to show the effect that convertible securities are having on the share price of a company. Continue reading...

What is a Reverse Stock Split?

A reverse stock split consolidates stocks at a certain ratio and reduces the number of shares outstanding while increasing the value of each share, as opposed to a regular stock split, which divides existing stocks into more shares which are worth less apiece. A normal stock split, which increases the number of shares an investor owns without increasing the total value of his or her interest in the company, has the benefit of increasing liquidity with the shares and possibly narrowing the bid/ask spread. A reverse stock split reduces the number of shares in circulation by effectively combining the existing shares at a certain ratio (such as, 2 shares now equals 1 share). Continue reading...

Do I Have to Pay Taxes on My Bitcoins?

The IRS currently requires that bitcoin and other cryptocurrencies be reported as personal property and capital assets. The IRS has published guidance that, yes, you do have to report gains/losses/income in the form of bitcoin and other “convertible virtual currencies.” Generally, the IRS treats bitcoin as property, instructing taxpayers to follow the existing IRS guidelines for personal property taxation. You can claim them as a capital asset, allowing you to treat them as stocks, essentially, with the ability to only pay long-term capital gains taxes on them if you hold them for a while. You can get paid in bitcoin by your employer, but employers must still withhold the usual amount of taxes, and you must report your bitcoin income the same way you would your regular income. Continue reading...

What is a Currency Transaction Report (CTR)?

CTRs (Currency Transaction Reports) are required filings to the Financial Crimes Enforcement Network (FinCEN) to report all transactions and deposits in cash (in any currency) worth over $10,000. This includes multiple transactions that add up to over $10,000. This rule is closely tied to Anti-Money Laundering (AML) rules and reporting requirements which have become more stringent since the turn of the century. Continue reading...

What is a leading indicator?

Leading indicators are economic or price data which have some degree of correlation with a movement in the market or a stock price. Leading indicators tend to happen before the market or price movement occurs. Traders and economists use leading indicators frequently to prepare for what’s next; they are based on theory as well as empirical historical evidence but like all indicators, they do not have a 100% accuracy rate – past performance does not guarantee future results. Continue reading...

What is the Negative Volume Index?

The Negative Volume Index (NVI) is a technical indicator that tracks decreases in trade volume for an index or security, as well as price changes on those days. Paul Dysart developed the original version of this indicator for market indexes, and it garnered renewed attention when it was reworked in the 1970s via Norman Fosback in his book Stock Market Logic. The price changes in a security or the percentage change in an index are only added to or subtracted from the Negative Volume Index on days when the trading volume is lower than the day before. By watching market movement on days with lower trading volume, investors can identify where institutions and fund managers are moving their money. If trading volume is down and the market continues to do well, it means that there is a strong bullish primary trend, and that trading volume is not artificially pushing prices around. Continue reading...

What is a 10-k?

A 10-k is an annual filing required by the SEC for companies over a certain size, which provides the regulators with more detail than can be found in an Annual Report. If a company has over $10 Million in assets and equity shares divided among 500 or more people, it must file a 10-K within 60 days of the end of the fiscal year, as well as 10-Q filings quarterly, whether it is publicly or privately traded. The 10-K will include specific details that companies may not have put in their Annual Report to shareholders, such as executive compensation, subsidiaries, audited financial statements, lawsuits, and so on. Continue reading...

What Are the Basics of Mutual Funds?

Mutual funds come in many varieties, but here are some basics to keep in mind to help you find your way. While most people have definitely heard the term mutual fund, many people do not understand how they work and how to use them. With over 10,000 mutual funds available in the marketplace today, the average person may have a hard time selecting appropriate mutual funds for his or her portfolio, determining a good asset mix, and understanding all of the charges associated with buying, owning, and selling mutual funds. Continue reading...

What is a Balance Sheet?

A company's balance sheet gives a picture of how all the assets, liabilities, and equities of the company "balance out." The basic accounting equation is Total Assets = Total Liabilities + Equity, and a Balance Sheet is going to detail these parts to show how everything adds up at the time of the report. With things equal on both sides of the equation, the company's books are balanced, the same way someone might go back through the carbon copies of checks they've written and "balance the checkbook" to make sure all checks written have been accounted for. Continue reading...

What is Bad Credit?

Bad credit implies that an individual or business has a low credit score or rating. Credit histories are reported and kept in publicly accessible databases. FICO (Fair Isaac & Company) is a credit rating institution that gives individuals a credit rating score based on reported credit histories. Scores range from 300-850, generally, but they also issue ratings based on auto loans and credit cards, which are on a scale from 250-900. Continue reading...

What is the Positive Volume Index?

The Positive Volume Index (PVI) is a technical indicator that tracks increases in trade volume for an index or security, as well as the changes in price on those days. Paul Dysart developed the original version of this indicator for market indexes using advance-decline numbers instead of prices. The Positive Volume Index was then redesigned by Norman Fosback for individual securities – the version commonly used today. Continue reading...

What is Dow Theory?

Dow Theory is perhaps the longest-standing method of market analysis still used in modern finance. It suggests that markets experience primary trends (which last several years), intermediate trends (which last under a year), and minor trends (which last less than a month). Markets are in an upward trend if an average exceeds certain thresholds, followed by a similar movement from another average. Longer, larger trends are considered more predictive than smaller ones, though correctly reading the primary trend in the main goal. Continue reading...

Is there any merit to the “dow theory?”

The Dow Theory may not always be accurate, but it has been part of the foundation of modern market analysis. The Dow Theory was formulated by the famous economist Charles Dow. What is important is that the Dow Theory concerns itself with the movements of very broad markets, rather than individual stocks. In particular, the Dow Theory, which was named post-mortem and summarized the editorials Dow wrote during his life, focuses on the movement of the Industrials (DJIA) relative to the Transportation index (DJTA) and theorizes that if one moves the other should follow, and if there is discord a reversal is probably coming. Continue reading...