What Is Transfer Risk? Transfer risk is defined as the threat that a local currency can’t be converted into another nation’s currency due to changes in nominal value or because of specific regulatory or exchange restrictions. Transfer risk, also known as conversion risk, may arise when a currency is not widely traded and capital controls
What Is a Transfer Tax? A transfer tax is a charge levied on the transfer of ownership or title to property from one individual or entity to another. A transfer tax may be imposed by a state, county, or municipality. It is usually not deductible from federal or state income taxes, although it may be
What Is Translation Exposure? Translation exposure (also known as translation risk) is the risk that a company’s equities, assets, liabilities, or income will change in value as a result of exchange rate changes. This occurs when a firm denominates a portion of its equities, assets, liabilities, or income in a foreign currency. It is also
What Is Translation Risk? Translation risk is the exchange rate risk associated with companies that deal in foreign currencies and list foreign assets on their balance sheets. Companies that own assets in foreign countries, such as plant and equipment, must convert the value of those assets from the foreign currency to the home country’s currency
What Is Transloading? Transloading is a shipping term that refers to the transfer of goods from one mode of transportation to another en route to their ultimate destination. Long-haul shipments of goods often involve multiple shipping companies, multiple modes of transit, or both. Transloading has become a standard method for shipping goods in recent years
What Is the Trans-Pacific Partnership? The Trans-Pacific Partnership (TPP) was a proposed free trade agreement among 12 Pacific Rim economies. The United States was included initially. In 2015, Congress gave President Barack Obama fast-track authority to negotiate the deal and put it to an up-or-down vote without amendments; all 12 nations signed the agreement in February
What Is the Transportation Sector? The transportation sector is a category of companies that provide services to move people or goods, as well as transportation infrastructure. Technically, transportation is a sub-group of the industrials sector according to the Global Industry Classification Standard (GICS). The transportation sector consists of several industries including air freight and logistics, airlines, marine
Transportation and Storage Costs: An Overview Through 2017, American taxpayers were allowed to deduct transportation and storage costs when relocating for a job. The Tax Cut and Jobs Act of 2017 eliminated this deduction, except for active-duty military personnel. To take the deduction, the member of the military must be relocating due to a military
What Is Trading Below Cash? The financial term trading below cash refers to when a company’s total share value is less than its cash minus debts. Trading below cash occurs when a company’s market capitalization is less than the amount of cash it has on hand and is most likely to happen when growth prospects
What Is a Trading Book? A trading book is the portfolio of financial instruments held by a brokerage or bank. Financial instruments in a trading book are purchased or sold for several reasons. For example, they might be bought or sold to facilitate trading actions for customers or to profit from trading spreads between the
