What Is a Disposition? A disposition is the act of selling or otherwise “disposing” of an asset or security. The most common form of a disposition would be selling a stock investment on the open market, such as a stock exchange. Other types of dispositions include donations to charities or trusts, the sale of real
What Is Disqualifying Income? Disqualifying income can prevent an otherwise eligible low- or moderate-income taxpayer from receiving the earned income tax credit (EITC) when filing their annual income taxes. If your income level allows you to claim the EITC on a federal income tax return, you may also be eligible to take a similar credit
What Is the Dirks Test? The Dirks test (also referred to as the personal benefits test) is a standard used by the Securities and Exchange Commission (SEC) to determine whether someone who receives and acts on insider information (a tippee) is guilty of insider trading. The Dirks test looks for two criteria: 1) whether the
What Is a Dirty Float? A dirty float is a floating exchange rate where a country’s central bank occasionally intervenes to change the direction or the pace of change of a country’s currency value. In most instances, the central bank in a dirty float system acts as a buffer against an external economic shock before its effects
What Is Dirty Price? A dirty price is a bond pricing quote, which refers to the cost of a bond that includes accrued interest based on the coupon rate. Bond price quotes between coupon payment dates reflect the accrued interest up to the day of the quote. In short, a dirty bond price includes accrued
What Is Disability Insurance? As its name suggests, disability insurance is a type of insurance product that provides income in the event that a policyholder is prevented from working and earning an income due to a disability. In the United States, individuals can obtain disability insurance from the government through the Social Security System. They
What Is Disaffirmance? Disaffirmance is a legal term that refers to the right for one party to renounce a contract. In order to render the contract void, the person must indicate that they will not be bound by the terms outlined in the agreement. This can be explicitly expressed by the person in a declaration
What Is Disaster Loss? A disaster loss is a special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area in the U.S. that has been designated as a federal disaster area by the president. Disaster losses can arise from such phenomena as
What Is a Disaster Recovery Site? A disaster recovery site, also known as a backup site, is a place that a company can temporarily relocate to following a security breach or natural disaster. The site is just one facet of the company’s larger disaster recovery or business continuity plan. Key Takeaways A disaster recovery site is a
What Is a Bankruptcy Discharge? A bankruptcy discharge, also known as a discharge in bankruptcy, refers to a permanent court order that releases a debtor from personal liability for certain types of debts. It is sometimes referred to simply as a discharge and comes at the end of a bankruptcy. After it is issued, the
