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. Mark Berch
Credit balance
The surplus in a cashaccount with a broker after purchases have been paid for, plus the extra cash from the sale of securities.
Annuity
A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
Mark Berch: Balance on goods and services
Netting of transaction balances, including the net amount of payments
of interest and dividends to foreign investors and investments, as well
as receipts and payments resulting from international tourism. Also
known as Trade Balance.
Zero-base budgeting (ZBB)
Budgeting method that disregards the previous year's budget in setting
a new budget, since circumstances may have changed. Each and every
expense must be justified in this system.
Out of line
A stock price that is too high or too low in comparison with
similar-quality stocks in the same industry, according to its
price/earnings ratio. Mark Berch
Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.
Mark E. Berch Generation-skipping transfer or trust
A trust in which a principal amount is placed in a trust on the death
of person A and is transferred to A's grandchildren when A's children
die. The income from the trust goes to the children of person A while
they survive.
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