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Financial Terms | |
W-9 Form |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: financial advisor, finance, inventory control, stock trading, tax advisor, credit, money, financial, Also see related: condo, first time homebuyer, homebuying, home buyer, insurance, home financing, homes, credit, home insurance, |
Definition of W-9 FormW-9 FormA form issued to a company’s suppliers, requesting that they identify
Related Terms:After-tax profit marginThe ratio of net income to net sales. After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. Asymmetric informationInformation that is known to some people but not to other people. Asymmetric taxesA situation wherein participants in a transaction have different net tax rates. Average tax ratetaxes as a fraction of income; total taxes divided by total taxable income. average tax rateTotal taxes owed divided by total income. BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in ![]() Before-tax profit marginThe ratio of net income before taxes to net sales. Blue-chip companyLarge and creditworthy company. Break-even tax rateThe tax rate at which a party to a prospective transaction is indifferent between entering Cash flow after interest and taxesNet income plus depreciation. Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s Performance Presentation Standards Implementation Company AcquisitionsAssets acquired to create money. May include plant, machinery and equipment, shares of another company etc. company cost of capitalExpected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations. Company-specific riskRelated: Unsystematic risk Companyspecific RiskSee asset-specific risk ![]() Corporate tax viewThe argument that double (corporate and individual) taxation of equity returns makes Corporate taxable equivalentRate of return required on a par bond to produce the same after-tax yield to Cost company arrangementArrangement whereby the shareholders of a project receive output free of Current Income Tax ExpenseThat portion of the total income tax provision that is based on Current Tax Payment Act of 1943A federal Act requiring employers to withhold income taxes from employee pay. Deferred Income Tax ExpenseThat portion of the total income tax provision that is the result Deferred Tax AssetFuture tax benefit that results from (1) the origination of a temporary difference Deferred Tax LiabilityFuture tax obligation that results from the origination of a temporary Deferred taxesA non-cash expense that provides a source of free cash flow. Amount allocated during the Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Depreciation tax shieldThe value of the tax write-off on depreciation of plant and equipment. ![]() depreciation tax shieldReduction in taxes attributable to the depreciation allowance. Direct-Method FormatA format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities. Double-tax agreementAgreement between two countries that taxes paid abroad can be offset against earnings before interest and income tax (EBIT)A measure of profit that Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Effective Tax RateThe total tax provision divided by pretax book income from continuing Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. Equivalent taxable yieldThe yield that must be offered on a taxable bond issue to give the same after-tax Expected value of perfect informationThe expected value if the future uncertain outcomes could be known Federal Employer Identification NumberA unique identification number issued Federal Unemployment Tax Act (FUTA)A federal Act requiring employers to pay a tax on the wages paid to their employees, which is then used to create a Finance Companycompany engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public. Financial Numbers GameThe use of creative accounting practices to alter a financial statement Flat benefit formulaMethod used to determine a participant's benefits in a defined benefit plan by Foreign tax creditHome country credit against domestic income tax for foreign taxes paid on foreign Form 1099A form used by businesses to report to the government payments Form 4070A form used by employees to report to an employer the amount of Form 668-WThe standard form used for notifying a company to garnish an employee’s Form 8027The form used by employers to report tip income by their employees Form 940A form used to report federal unemployment tax remittances and liabilities. Form 940-EZA shortened version of the form 940. Form I-9The Employment Eligibility Verification form, which must be filled Formalized Line of CreditA contractual commitment to make loans to a particular borrower up to a specified maximum during a specified period, usually one year. Formula basisA method of selling a new issue of common stock in which the SEC declares the registration Future-Oriented Financial InformationInformation about prospective results of operations, financial position and/or changes in financial position, based on assumptions about future economic conditions and courses of action. Future-oriented financial information is presented as either a forecast or a projection. Holding companyA corporation that owns enough voting stock in another firm to control management and Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA)A federal Act shielding employers from liability if they have made Immigration Reform and Control Act of 1986A federal Act requiring all employers having at least four employees to verify the identity and employment Imputation tax systemArrangement by which investors who receive a dividend also receive a tax credit for INCOME TAXWhat the business paid to the IRS. Income taxA government tax on the income earned by an individual or corporation. Income Tax ExpenseSee income tax provision. Income Tax ProvisionThe expense deduction from pretax book income reported on the Indirect-Method FormatA format for the operating section of the cash-flow statement that Indirect Taxestaxes paid by consumers when they buy goods and services. A sales tax is an example. Inflation TaxThe loss in purchasing power due to inflation eroding the real value of financial assets such as cash. informationbits of knowledge or fact that have been carefully Information asymmetryA situation involving information that is known to some, but not all, participants. Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to Information-content effectThe rise in the stock price following the dividend signal. information content of dividendsDividend increases send good news about cash flow and earnings. Dividend cuts send bad news. Information costsTransaction costs that include the assessment of the investment merits of a financial asset. Information-motivated tradesTrades in which an investor believes he or she possesses pertinent Information servicesorganizations that furnish investment and other types of information, such as Informational efficiencyThe speed and accuracy with which prices reflect new information. Informationless tradesTrades that are the result of either a reallocation of wealth or an implementation of an Insider informationRelevant information about a company that has not yet been made public. It is illegal for Insurance CompanyA firm licensed to sell insurance to the public. Intercompany loanLoan made by one unit of a corporation to another unit of the same corporation. Intercompany transactionTransaction carried out between two units of the same corporation. Interest equalization taxtax on foreign investment by residents of the U.S. which was abolished in 1974. Interest tax shieldThe reduction in income taxes that results from the tax-deductibility of interest payments. interest tax shieldtax savings resulting from deductibility of interest payments. Investment tax creditProportion of new capital investment that can be used to reduce a company's tax bill Investment Tax CreditA reduction in taxes offered to firms to induce them to increase investment spending. Issued share capitalTotal amount of shares that are in issue. Related: outstanding shares. Issued sharesThe number of shares that the company has sold to the public. issued sharesShares that have been issued by the company. Item numberA number uniquely identifying a product or component. Law of large numbersThe mean of a random sample approaches the mean (expected value) of the Legal bankruptcyA legal proceeding for liquidating or reorganizing a business. Legal capitalValue at which a company's shares are recorded in its books. Legal defeasanceThe deposit of cash and permitted securities, as specified in the bond indenture, into an Legal investmentsInvestments that a regulated entity is permitted to make under the rules and regulations Legal Reserve RequirementSee reserve requirement. limited liability companyan organizational form that is a hybrid of the corporate and partnership organizational Limited-tax general obligation bondA general obligation bond that is limited as to revenue sources. management information system (MIS)a structure of interrelated elements that collects, organizes, and communicates Margin Tax RateThe tax rate applicable to the last unit of income. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |