What Is a Tax Deed? The term “tax deed” refers to a legal document granting ownership of a property to a government body when the owner fails to pay any associated property taxes. A tax deed gives the government agency the authority to sell the property to collect the delinquent taxes. Once sold, the property
What Does Tax-Deferred Mean? Tax-deferred status refers to investment earnings—such as interest, dividends, or capital gains—that accumulate tax-free until the investor takes constructive receipt of the profits. Some common examples of tax-deferred investments include individual retirement accounts (IRAs) and deferred annuities. Key Takeaways Tax-deferred status refers to investment earnings—such as interest, dividends, or capital gains—that
What Is a Tax-Deferred Savings Plan? A tax-deferred savings plan is an investment account that allows a taxpayer to postpone paying income taxes on the money invested until it is withdrawn, generally after retirement. The best-known such plans are individual retirement accounts (IRAs) and 401(k) plans. Key Takeaways The 401(k) and traditional IRA are two
What Is a Target-Risk Fund? A target-risk fund is a type of investment fund with a portfolio asset allocation that holds a diversified mix of stocks, bonds, and other investments to create a desired risk profile. The fund manager of a target-risk fund is responsible for overseeing all the securities owned within the fund to
What Is a Target-Date Fund? Target-date funds are structured to maximize the investor’s returns by a specific date. Generally, the funds are designed to build gains in the early years by focusing on riskier growth stocks, then they aim to retain those gains by weighting towards safer, more conservative choices as the target date approaches.
What Is a Targeted-Distribution Fund? The term targeted-distribution fund refers to a specialized mutual fund or exchange-traded fund (ETF) that distributes regular payments of income or capital gains to its investors. As suggested by the name, this type of fund focuses on distributions rather than contributions, usually with a specific retirement date in mind. This makes them
What Is a Target Firm? A target firm or target company refers to a company chosen as an attractive merger or acquisition option by a potential acquirer. A takeover attempt can take on many different flavors, depending on the attitude of the target firm toward the acquirer. If management and shareholders favor the transaction, then
What Is a Target Hash? In cryptocurrency mining, a target hash is a numeric value that a hashed block header must be less than or equal to in order for a new block to be awarded to a miner. Block headers identify individual blocks in a blockchain. Cryptocurrency mining refers to the process of gathering cryptocurrency as a
What Is a Target Market? A target market is a group of people that have been identified as the most likely potential customers for a product because of their shared characteristics such as age, income, and lifestyle. Identifying the target market is a key part of the decision-making process when a company designs, packages, and
What Is a Target Rate? Also known as an operating target, a target rate is a key interest rate in an economy that the central bank uses to guide and gauge the effectiveness of its monetary policy. The target rate is an intermediate target that the bank can directly influence by its monetary policy and
