What Is the Alternative Minimum Tax? An alternative minimum tax (AMT) places a floor on the percentage of taxes that a filer must pay to the government, no matter how many deductions or credits the filer may claim. The United States currently has an alternative minimum tax for taxpayers who earn above certain income thresholds.
What Are Alternative Risk Financing Facilities? An alternative risk financing facility is a type of private insurance created and funded by its customers to provide coverage tailored to their needs. They were originally formed by groups of people or organizations with a common need for a type of coverage that was not available commercially, but
What Is the Alternative Risk Transfer (ART) Market? The alternative risk transfer (ART) market is a portion of the insurance market that allows companies to purchase coverage and transfer risk without having to use traditional commercial insurance. The ART market includes risk retention groups (RRGs), insurance pools, and captive insurers, wholly-owned subsidiary companies that provide risk
Altiplano Option: An Overview An altiplano option is a particularly exotic type of derivatives investment that is based on multiple underlying securities rather than on a single underlying asset. It is one of a family of such options, called mountain range options, that was invented in the 1990s by the Swiss investment firm Société Générale.
What Is Always Be Closing—ABC? Always Be Closing (ABC) is a motivational phrase used to describe a sales strategy. It implies that a salesperson following the regimen should continuously look for new prospects, pitch products or services to those prospects, and ultimately complete a sale. As a strategy, ABC requires that the salesperson be persistent
What Is an Amalgamation? An amalgamation is a combination of two or more companies into a new entity. Amalgamation is distinct from a merger because neither company involved survives as a legal entity. Instead, a completely new entity is formed to house the combined assets and liabilities of both companies. The term amalgamation has generally fallen out
Amancio Ortega, the Founding Chair of retail giant Inditex, the parent company of Zara, the largest global fashion retailer, is the wealthiest person in Spain and one of the wealthiest people in the world. Ortega built a retail empire as one of the earliest and most successful pioneers of fast fashion—a retail concept based on
What Is AM Best? AM Best is a credit rating agency focused exclusively on the worldwide insurance industry. AM Best assigns credit ratings that assess an insurance company’s creditworthiness, which refers to the likelihood the company will default on its obligations. Consumers, financial professionals, and investors all use AM Best’s credit ratings to help them
What Is an Amended Return? An amended return is a form filed in order to make corrections to a tax return from a previous year. An amended return can correct errors and claim a more advantageous tax status, such as a refund. For example, one might choose to file an amended return in instances of
What Is the American Agency System? The American agency system is a method of selling insurance policies. The system involves independent insurance agents who locate the best insurance policies for their customers and receive a commission for each policy they sell. The American agency system uses independent agents who sell policies from a wide variety
