Definition of Section 83(b) Election

Section 83(b) Election

The decision by an employee to recognize taxable income
on the purchase price of an incentive stock option within 30 days following
the date when an option is exercised and withhold taxes at the ordinary
income tax rate at that time.

Adverse selection

A situation in which market participation is a negative signal.

Country selection

A type of active international management that measures the contribution to performance
attributable to investing in the better-performing stock markets of the world.

Cross-sectional approach

A statistical methodology applied to a set of firms at a particular point in time.

Currency selection

Asset allocation in which the investor chooses among investments denominated in
different currencies.

Section 482

United States Department of Treasury regulations governing transfer prices.

Security selection decision

Choosing the particular securities to include in a portfolio.

Self-selection

Consequence of a contract that induces only one group (e.g. low risk individuals) to participate.

Stock selection

An active portfolio management technique that focuses on advantageous selection of
particular stocks rather than on broad asset allocation choices.

Country beta

Covariance of a national economy's rate of return and the rate of return the world economy
divided by the variance of the world economy.

Country financial risk

The ability of the national economy to generate enough foreign exchange to meet
payments of interest and principal on its foreign debt.

Country risk General

Level of political and economic uncertainty in a country affecting the value of loans or
investments in that country.

Currency selection

Asset allocation in which the investor chooses among investments denominated in
different currencies.

Security selection decision

Choosing the particular securities to include in a portfolio.

Self-selection

Consequence of a contract that induces only one group (e.g. low risk individuals) to participate.

Single country fund

A mutual fund that invests in individual countries outside the United States.

Stock selection

An active portfolio management technique that focuses on advantageous selection of
particular stocks rather than on broad asset allocation choices.

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