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Exemption
ExemptionDirect reductions from gross income allowed by the IRS. RELATED TERMS-------------------------------------- Gross A sum without deduction or set off, i.e., without deduction of taxes from a person's income. Income Money received by an individual as a salary, or from investments. Cash deposits and bonds will provide income in the form of interest. Shares will, in most but not all cases, provide income in the form of twice-yearly dividends. SIMILAR TERMS-------------------------------------- Exempt list Sophisticated investors, usually institutional investors, who are considered informed enough that new issues can be marketed to them without a prospectus. Exempt securities Instruments exempt from the registration requirements of the Securities Act of 1933 or the margin requirements of the SEC Act of 1934. PREVIOUS AND NEXT TERMS-------------------------------------- Execution The process of completing an order to buy or sell securities. Once a trade is executed, it is reported by a Confirmation Report; settlement (payment and transfer of ownership) occurs in the U.S. between one (mutual funds) and three (stocks) days after an order is executed. Execution costs The difference between the execution price of a security and the price that would have existed in the absence of a trade. Executor An individual or trust institution nominated in a will and appointed by a court to settle the estate of a deceased person. Exempt list Sophisticated investors, usually institutional investors, who are considered informed enough that new issues can be marketed to them without a prospectus. Exempt securities Instruments exempt from the registration requirements of the Securities Act of 1933 or the margin requirements of the SEC Act of 1934. Exemption Exercise To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of a put) the underlying security. Exercise limit Cap on the number of option contracts of any one class of contract that can be exercised within a five-day period contract. Exercise notice A broker's notification from a client who wants to exercise a right to buy or sell (depending on the type of contract) the underlying security of the option contract. Exercise price The price at which the security underlying an options contract may be bought or sold. Exercise price or strike price of an option The price at which the holder may buy or sell the underlying security. We thank you for using the Financial Dictionary to search for Exemption. If you have a better definition for Exemption than the one presented here, please let us know by making use of the suggest a term option. This definition of Exemption may be disputed by other professionals. Our attempt is to provide easy definitions on Exemption and any other medical topic for the public at large.
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