What Is State Income Tax? State income tax is a direct tax levied by a state on income earned in or from the state. In your state of residence, it may mean all your income earned anywhere. Like federal tax, state income tax is self-assessed, which means taxpayers file required state tax returns. Key Takeaways Forty-two
What Is Stratified Random Sampling? Stratified random sampling is a method of sampling that involves the division of a population into smaller subgroups known as strata. In stratified random sampling, or stratification, the strata are formed based on members’ shared attributes or characteristics, such as income or educational attainment. Stratified random sampling has numerous applications
Henry Paulson is regarded as a successful American banker and civil servant. As U.S. Secretary of the Treasury under President George W. Bush, Paulson is best known for spearheading efforts to support the United States economy during the 2008 financial crisis. He is the author of five books, including On The Brink: Inside The Race
What Is TAAPS? Treasury Automated Auction Processing System (TAAPS) is a computer network system developed by the Federal Reserve Bank to process bids and tenders received for Treasury securities. Treasury securities trade through an auction process in the primary market. TAAPS receives tenders from brokers wishing to purchase marketable securities. Each bid is processed and reviewed automatically by
What is a T-Account? A T-account is an informal term for a set of financial records that uses double-entry bookkeeping. The term describes the appearance of the bookkeeping entries. First, a large letter T is drawn on a page. The title of the account is then entered just above the top horizontal line, while underneath
What Is Tactical Asset Allocation (TAA)? Tactical asset allocation is an active management portfolio strategy that shifts the percentage of assets held in various categories to take advantage of market pricing anomalies or strong market sectors. This strategy allows portfolio managers to create extra value by taking advantage of certain situations in the marketplace. It
What Are Total Annual Fund Operating Expenses? Total annual fund operating expenses are a fund’s costs, such as management and transaction fees and 12b-1 fees, reported as a percentage of the fund’s total assets. Total annual fund operating expenses are required to be disclosed to investors in a fund’s prospectus. They are reported as a
What Is the Taft-Hartley Act? The Taft-Hartley Act is a 1947 U.S. federal law that extended and modified the 1935 Wagner Act. It prohibits certain union practices and requires disclosure of certain financial and political activities by unions. The bill was initially vetoed by President Truman, but Congress overrode the veto. Key Takeaways The Taft-Hartley
What Is Tail Risk? Tail risk is a form of portfolio risk that arises when the possibility that an investment will move more than three standard deviations from the mean is greater than what is shown by a normal distribution. Tail risks include events that have a small probability of occurring and occur at both
What Does “Take a Flier” Mean? The term “take a flier” is a colloquial term that refers to the risk that an investor takes when they knowingly make an investment that may result in a significant loss. Put simply, it is financial slang that denotes the actions that an individual who knowingly engages in risky
