The Fx options trading Questions

Category: glossary , Asked by: Y. Bolton from United States

A: The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. This can be used as another name for "economic value added" (EVA). Don't confuse this with 'accounting profit', which is what most people generally mean when they refer to profit. In calculating economic profit, opportunity costs are deducted from revenues earned. Opportunity costs are the alternative returns foregone by using the chosen inputs. As a result, you can have a significant accounting profit with little to no economic profit. For example, say you invest $100,000 to start a business, and in that year you earn $120,000 in profits. Your accounting profit would be $20,000. However, say that same year you could have earned an income of $45,000 had you been employed. Therefore, you have an economic loss of $25,000 (120,000 - 100,000 - 45,000).

Category: glossary , Asked by: Q. Ewing from United States

A: The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event. Taxable events include, but are not limited to, annual income, the sale of an asset, a fiscal year-end or an inheritance. Tax liability can be calculated by applying the appropriate tax rate to the taxable event's tax base. A tax liability is a legal claim on assets. Should an entity default on paying its taxes, the governing authority may foreclose on the delinquent account, or take out a lien or encumbrance on an asset.

Category: glossary , Asked by: D. Love from United States

A: "dummy shareholder " is A person who holds shares in his or her name, but the shares are really owned by someone else. An example might be a person holding shares on behalf of his or her spouse.