Take-home pay is the net amount of income received after the deduction of taxes, benefits, and voluntary contributions from a paycheck. It is the difference resulting from the subtraction of all deductions from gross income. Deductions include federal, state and local income tax, Social Security and Medicare contributions, retirement account contributions, and medical, dental and other insurance
What Is Take or Pay? Take or pay is a provision in a contract stating that a buyer has the obligation of either taking delivery of goods from a seller or paying a specified penalty amount to the seller for not taking them. Take-or-pay provisions benefit both parties by sharing risk, and they benefit society
What Is Take-Out Commitment? Take-out commitment is a written guaranty by a lender to provide permanent financing to replace a short term loan at a specified future date if the project has reached a certain stage. Key Takeaways Take-out commitment is a written guaranty by a lender to provide permanent financing to replace a short
What Is a Take-Out Loan? A take-out loan is a type of long-term financing that replaces short-term interim financing. Such loans are usually mortgages that are collateralized with assets and have fixed payments that are amortizing. Take-out lenders who underwrite these loans are normally large financial conglomerates, such as insurance or investment companies, while banks
What Is a Takeover? A takeover occurs when one company makes a successful bid to assume control of or acquire another. Takeovers can be done by purchasing a majority stake in the target firm. Takeovers are also commonly done through the merger and acquisition process. In a takeover, the company making the bid is the
What is a Swingline Loan? A swingline loan is a short-term loan made by financial institutions that provides businesses with access to funds to cover debt commitments. A swingline loan can be a sub-limit of an existing credit facility or a syndicated credit line, which is financing offered by a group of lenders. Swingline loans
What Is Swing Trading? Investopedia / Madelyn Goodnight Swing trading is a style of trading that attempts to capture short- to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities. Swing traders may utilize
What Is the Swiss National Bank (SNB)? The term Swiss National Bank (SNB) refers to the central bank of Switzerland. Founded in 1906, the SNB is located in Berne and Zurich, with six other offices in the country along with a branch office in Singapore. The central bank acts as an independent body, taking charge
What Is a Switch? A switch, also known as “rolling forward,” is a futures trading strategy involving closing a near month contract and opening a later month contract with the proceeds. Switching is not the same as spread trading. In a switch, the trader only owns one position at a time. In a spread, the
What Is Switching? Switching generally refers to the process of transferring or changing investments. Investors may decide to move investment money between different funds, transfer their brokerage account to a different broker, or sell their securities in exchange for different securities. Depending on the process you choose, there are sometimes costs associated with switching. Key
