What Is a Drawback? A drawback is a rebate on taxes or tariffs paid by businesses on goods that were imported into the United States and then exported out again, such as on raw materials being imported for use in production, and the final goods then being exported. This lessens the tax burden on companies
What Was E? “E” was a temporary character suffix added to stock symbols traded on the Nasdaq exchange, which indicated that the issuer of the stock was delinquent in regulatory filings. The “E” suffix was only used for Over-the-Counter Bulletin Board (OTCBB) issues. The Nasdaq replaced the “E” suffix with the Financial Status Indicator (FSI) in
What Is the Equivalent Annual Cost (EAC)? Equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset over its entire life. Firms often use EAC for capital budgeting decisions, as it allows a company to compare the cost-effectiveness of various assets with unequal lifespans. Equivalent Annual Cost (EAC) Understanding the
What Is Europe, Australasia, Far East (EAFE)? Europe, Australasia, and the Far East are the most developed geographical areas of the world outside the United States and Canada. These regions are commonly referred to by the acronym EAFE, and many different exchange-traded funds (ETFs) and mutual funds focus their efforts on investing in companies in
What Is an Early Withdrawal? The term early withdrawal refers to the removal of funds from a fixed-term investment prior to the allowed date. Early withdrawals can be made from investment vehicles, such as annuities, certificates of deposit (CDs), or qualified retirement accounts, before the maturity date. Doing so can result in fees and penalties
What Is Earned Income? Earned income is money received as pay for work performed, such as wages, salaries, bonuses, commissions, tips, and net earnings from self-employment. It can also include long-term disability, union strike benefits, and, in some cases, payments from certain deferred retirement compensation arrangements. Earned income can be contrasted with unearned income, also
What Is the Earned Income Tax Credit (EITC)? The earned income tax credit (EITC) is a refundable tax credit that helps certain U.S. taxpayers with low earnings by reducing the amount of tax owed on a dollar-for-dollar basis. Taxpayers may be eligible for refunds if their tax credit exceeds their tax liability for the year.
What Is an Earned Premium? The term earned premium refers to the premium collected by an insurance company for the portion of a policy that has expired. It is what the insured party has paid for a portion of time in which the insurance policy was in effect, but has since expired. Since the insurance company covers
What Is the Depository Trust Company (DTC)? The Depository Trust Company (DTC) is one of the world’s largest securities depositories. Founded in 1973 and based in New York City, the DTC is organized as a limited purpose trust company and provides safekeeping through electronic record-keeping of securities balances. It also acts as a clearinghouse to
What Is the Depository Trust and Clearing Corporation (DTCC)? The Depository Trust and Clearing Corporation (DTCC) is an American financial services company founded in 1999 that provides clearing and settlement services for the financial markets. When the DTCC was established in 1999, it combined the functions of the Depository Trust Company (DTC) and the National
