What Is an Education IRA? An education IRA is a tax-advantaged investment account for higher education, now more formally known as a Coverdell Education Savings Account (ESA). Under this educational savings vehicle, parents and guardians are allowed to make nondeductible contributions to an education individual retirement account (IRA) for a child under the age of
What Is an Education Loan? An education loan is a sum of money borrowed to finance post-secondary education or higher education-related expenses. Education loans are intended to cover the cost of tuition, books and supplies, and living expenses while the borrower is in the process of pursuing a degree. Payments are often deferred while students
What Is the Educator Expense Deduction? The educator expense deduction is an adjusted gross income (AGI) deduction for teachers and other education professionals for up to $250 of out-of-pocket expenses. This deduction allows eligible educators to deduct unreimbursed expenses related to education. Qualified expenses include books and supplies used in the classroom and any technology
What Is Effective Date? In contract law, the effective date is the date that an agreement or transaction between or among signatories becomes binding. For an initial public offering (IPO), it is the date when shares can first be traded on an exchange. Both parties to a contract usually need to agree on an effective
What Is Effective Duration? Effective duration is a duration calculation for bonds that have embedded options. This measure of duration takes into account the fact that expected cash flows will fluctuate as interest rates change and is, therefore, a measure of risk. Effective duration can be estimated using modified duration if a bond with embedded
What Is an Economic Indicator? An economic indicator is a piece of economic data, usually of macroeconomic scale, that is used by analysts to interpret current or future investment possibilities. These indicators also help to judge the overall health of an economy. Economic indicators can be anything the investor chooses, but specific pieces of data
What Is Economic Blight? Economic blight is the visible and physical decline of a property, neighborhood, or city due to a combination of economic stagnation, population decline with residents and businesses leaving the area, secular decline in real incomes, and the cost of maintaining the quality of older structures. These factors tend to feed on
What Is the Economic Calendar? The economic calendar refers to the scheduled dates of significant releases or events that may affect the movement of individual security prices or markets as a whole. Investors and traders use the economic calendar to plan trades and portfolio reallocations and to be alert for chart patterns and indicators that
What Is Economic Capital? Economic capital is a measure of risk in terms of capital. More specifically, it’s the amount of capital that a company (usually in financial services) needs to ensure that it stays solvent given its risk profile. Economic capital is calculated internally by the company, sometimes using proprietary models. The resulting number
What Is Economic Collapse? An economic collapse is a breakdown of a national, regional, or territorial economy that typically follows a time of crisis. An economic collapse occurs at the onset of a severe version of an economic contraction, depression, or recession and can last any number of years depending on the severity of the
