What Is a Short-Term Gain? A short-term gain is a profit realized from the sale of personal or investment property, a capital asset, that has been held for one year or less. These gains are taxed as ordinary income, which is your personal income tax rate. Key Takeaways A short-term gain is a profit realized
What Is Short-Term Paper? Short-term paper refers broadly to fixed-income securities that typically have original maturities of less than nine months. Short-term paper is usually issued at a discount and provides a relatively low-risk financing alternative for companies, governments, or other organizations to fund normal operations. Key Takeaways Short-term paper is a broad category of
What Is Showrooming? The term showrooming refers to the practice of visiting brick-and-mortar retail stores to research merchandise before purchasing it online for a lower price. The practice allows individuals to look, touch, and test products before they spend their money, especially for higher-priced products. Showrooming became more frequent with the rise of smartphones and
What Is Shrinkage? Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, shoplifting, administrative error, vendor fraud, damage, and cashier error. Shrinkage is the difference between recorded inventory on a company’s balance sheet and its actual inventory. This concept is a key problem for retailers, as it results in
What Is a Share Premium Account? A share premium account is typically listed on a company’s balance sheet. This account is credited for money paid, or promised to be paid, by a shareholder for a share, but only when the shareholder pays more than the cost of a share. This account can be used to write off
What Are Share Purchase Rights? A share repurchase right in a financial contract gives the right holder the option, but not the obligation, to purchase (or repurchase) a predetermined number of shares at a predetermined price. Key Takeaways: A share repurchase right in a financial contract gives the right holder the option, but not the
What Is a Share Repurchase? A share repurchase is a transaction whereby a company buys back its own shares from the marketplace. A company might buy back its shares because management considers them undervalued. The company buys shares directly from the market or offers its shareholders the option of tendering their shares directly to the
What Is Share Turnover? Share turnover is a measure of stock liquidity, calculated by dividing the total number of shares traded during some period by the average number of shares outstanding for the same period. The higher the share turnover, the more liquid company shares are. Share turnover should not be confused with the turnover
What Is Sharia? The term sharia refers to a set of Islamic religious law that governs aspects of day-to-day life for Muslims in addition to religious rituals. Sharia law also provides religious followers with a set of principles and guidelines to help them make important decisions in their lives, such as finances and investments. Islamic
What is the Sharing Economy? The sharing economy is an economic model defined as a peer-to-peer (P2P) based activity of acquiring, providing, or sharing access to goods and services that is often facilitated by a community-based online platform. Key Takeaways The sharing economy involves short-term peer-to-peer transactions to share use of idle assets and services or
