Consumer confidence is the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy.A survey by the Conference Board that measures how … [Read more...]
Constructive Sale Rule – Section 1259
A section of the Internal Revenue Code that clarifies the transactions that are subject to capital gains taxation. Basically, any transaction that essentially offsets a previously held position is subject to the tax, even if it is not a straight sale of a security. An example of a transaction that falls under the Constructive Sale Rule is a short sale against the box.. … [Read more...]
What is an Underpayment Penalty?
Underpayment Penalty A tax penalty enacted on an individual for not paying enough of his or her total estimated tax and withholding. It is a penalty assessed by tax authorities when a taxpayer's withholding and estimated tax payments (plus any overpayment from the prior year) are substantially less than the tax that is owed. The IRS does not assess an underpayment penalty … [Read more...]
Choosing a Data-Based Intraday Charts
Traders always have this habit of seeing intraday price charts continuosly while trading in market hours especially based on time intervals, such as five-minute or 60-minute charts. This means that one bar will print at the end of each specified time interval. On a 60-minute chart, for example, a bar will print at 9:30, 10:30, 11:30 and so on until the end of the trading … [Read more...]
How To Investing In Consumer Staples
The consumer staples sector is composed of companies whose primary lines of business are food, beverages, tobacco and other household items. Examples of these companies, include Procter & Gamble (NYSE:PG), Colgate Palmolive (NYSE:CL) and Gillette. These types of companies have historically been characterized as noncyclical in nature as compared to their close relative, the … [Read more...]