Financial Dictionary

This dictionary contains:
24549
financial terms

Deductible




Deductible

An amount or period which must be deducted before an insurance payout or settlement is calculated.

RELATED TERMS
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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
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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
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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.

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This dictionary contains 24549 terms.







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