What Is an Execution? Execution is the completion of a buy or sell order for a security. The execution of an order occurs when it gets filled, not when the investor places it. When the investor submits the trade, it is sent to a broker, who then determines the best way for it to be
What Is Execution-Only? Execution-only is a trading service that is restricted to only the execution of trades, without the client receiving any advice about the merits or risks of the investments or their suitability. Execution-only, also known as agency only, services are predominantly internet-based or telephone-based, and are typically lower cost than more robust offerings. Since
What Is an Executive Director? An executive director is the senior operating officer or manager of an organization or corporation, usually at a nonprofit. Their duties are similar to those of a chief executive officer (CEO) of a for-profit company. The executive director is responsible for strategic planning, working with the board of directors (B
What Is an Executor? An executor of an estate is an individual appointed to administer the last will and testament of a deceased person. The executor’s main duty is to carry out the instructions to manage the affairs and wishes of the deceased. The executor is appointed either by the testator of the will (the
What Is an Exempt Commodity? An exempt commodity is any exchange traded commodity that is not an excluded commodity or an agricultural commodity, such as energy and metal commodities. Transactions in an exempt commodity may only take place between eligible contract participants or commercial entities. “Exempt commodity” serves as a residual term for any of
What Is Exempt Income? Exempt income refers to certain types of income that are not subject to income tax. Some types of income are exempt from federal or state income tax, or both. The IRS determines which types of income are exempt from federal income tax and the circumstances for each exemption. States have their
What Is an Exempt-Interest Dividend? An exempt-interest dividend is a distribution from a mutual fund that is not subject to federal income tax. Exempt-interest dividends most often are derived from mutual funds that invest in municipal bonds. While exempt-interest dividends are not subject to federal income tax, they may still be subject to state income
What Is an Exemption? An exemption reduces the amount of income that is subject to income tax. There are a variety of exemptions allowed by the Internal Revenue Service (IRS). Previously, the two most common types were personal and dependent exemptions. But with the changes brought about by the 2017 Tax Cuts and Jobs Act
What Is an Exemption Trust? An exemption trust is a trust designed to drastically reduce or eliminate federal estate taxes for a married couple’s estate. This type of estate plan is established as an irrevocable trust that will hold the assets of the first member of the couple to die. An exemption trust does not pass the assets along to
What Is an Exempt Transaction? An exempt transaction is a type of securities transaction where a business does not need to file registrations with any regulatory bodies, provided the number of securities involved is relatively minor compared to the scope of the issuer’s operations and that no new securities are being issued. Key Takeaways Exempt
