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Deductible
DeductibleAn amount or period which must be deducted before an insurance payout or settlement is calculated. RELATED TERMS-------------------------------------- Insurance A contract in which payment of premiums covers the insured against something which may, or may not occur. Settlement When payment is made for a trade. SIMILAR TERMS-------------------------------------- Deductible contribution Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes. Deduction An expense that is allowable as a reduction of gross taxable income by the IRS. Deductive reasoning Using known facts to draw a conclusion about a specific situation. PREVIOUS AND NEXT TERMS-------------------------------------- Declaration The Board of Directors motion to authorize dividend payments. Declaration date The date on which a firm's directors meet and announce the date and amount of the next dividend. Declaration of Trust A trustee that holds the trust assets in his or her name. Dedicated capital Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value. Dedication strategy Refers to multiperiod cash-flow matching. Deductible Deductible contribution Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes. Deduction An expense that is allowable as a reduction of gross taxable income by the IRS. Deductive reasoning Using known facts to draw a conclusion about a specific situation. Deep discount bond A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero-coupon bond. Deep in the money A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price. We thank you for using the Financial Dictionary to search for Deductible. If you have a better definition for Deductible than the one presented here, please let us know by making use of the suggest a term option. This definition of Deductible may be disputed by other professionals. Our attempt is to provide easy definitions on Deductible and any other medical topic for the public at large.
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