What Is the China Investment Corporation (CIC)? The China Investment Corporation (CIC) is the sovereign wealth fund (SWF) of the People’s Republic of China. The CIC was founded in 2007 and has assets under management (AUM) of more than $1.3 trillion. The fund invests on a long-term basis in global public and private assets to
What Is a Chinese Hedge? A Chinese hedge is a tactical position that seeks to capitalize on mispriced conversion factors while protecting investors from risk. It involves establishing a short position in a convertible security and a long position in the convertible’s underlying asset. The trader stands to profit when the underlying asset depreciates, diminishing
What Is a Chinese Wall? The term Chinese wall, as it is used in the business world, describes a virtual barrier intended to block the exchange of information between departments if it might result in business activities that are ethically or legally questionable. In the United States, corporations, brokerage firms, investment banks, and retail banks have
What Is a Chip-And-PIN Card? A chip-and-PIN card is a type of credit card in which the cardholder must authorize the transaction by entering their personal identification number (PIN). Unlike previous cards which utilized a magnetic stripe containing information about the cardholder, chip-and-PIN cards contain a square-shaped microchip that generates and stores unique information for
What Is a Charitable Contributions Deduction? The charitable contributions deduction reduces taxable income by allowing individual taxpayers and businesses to deduct contributions of cash and property to qualified charitable organizations. The amount that can be deducted in a year is subject to limits that depend on the type of donation and how you file your taxes.
What Is a Charitable Donation? A charitable donation is a gift of cash or property made to a nonprofit organization to help it accomplish its goals, for which the donor receives nothing of value in return. In the U.S., donations can be deducted from the federal tax returns of individuals and companies making them. U.S.
What Is a Charitable Gift Annuity? A charitable gift annuity is an arrangement between a donor and a nonprofit organization in which the donor receives a regular payment for life based on the value of assets transferred to the organization. After the donor’s death, the assets are retained by the organization. The charitable gift annuity
What Is a Charitable Lead Trust? Trusts can be used in estate planning to pass on a person’s assets smoothly and to the best financial effect. A charitable lead trust is a type of irrevocable trust designed to reduce a beneficiary’s potential transfer taxes upon inheritance. They can be funded with cash and/or other assets
What Is a Charitable Remainder Annuity Trust (CRAT)? A charitable remainder annuity trust (CRAT) is a type of gift transaction in which a donor (also known as a “grantor,” “trustor,” or “benefactor”) contributes assets to an irrevocable trust that then donates to one or more charities while also paying a fixed income to one or
What Is a Charitable Remainder Trust? A charitable remainder trust is a “split-interest” giving vehicle that enables people to pursue philanthropic goals while still generating income. Tax exempt and irrevocable, they are designed to reduce the taxable income of individuals. They are set up with a donation by the trustor (also known as “the grantor”
