Dividend rollover plans are processes that involve the buying and selling securities that are shortly going to pay a dividend. An investment strategy in which a dividend-paying stock is purchased right before the ex-dividend date, which gives the purchaser the right to the divided, with the position being sold off shortly after the ex-dividend date. The sole intention of this … [Read more...]
What is an Cutoff Point?
Cut off point is a point separating two opposite states, such as 'yes' and 'no.'Basically it is the point at which an investor decides whether or not a particular security is worth purchasing. The cutoff point is very subjective and will be based on the personal characteristics of the individual investor.he cutoff point is subject and varies from investor to investor. However, … [Read more...]
Consumer Confidence Index – CCI Explained
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...]
ABC Agreement
ABC Agreement is an agreement between a firm that finances a seat on the New York Stock Exchange and the employee who purchases the seat. The agreement, approved by the exchange, permits the member to transfer the seat to another employee of the member firm, keep the seat and purchase a second membership for another individual designated by the lending firm, or sell the … [Read more...]