What Is an IRA Rollover? An IRA rollover is a transfer of funds from a retirement account, such as an employer-sponsored plan, into an individual retirement account (IRA). The purpose of a rollover is to maintain the tax-deferred status of those assets. IRA rollovers are commonly used to hold 401(k), 403(b), or profit-sharing plan assets that are
What Is an IRA Transfer? An IRA transfer (or IRA rollover) refers to transferring money from an individual retirement account (IRA) to a different account. The money can be transferred to another type of retirement account, a brokerage account, or a bank account. As long as the money goes into another similar-type account and no
What Is a Decedent (IRD) Deduction? Decedent (IRD) deduction is short for Income in Respect of a Decedent tax deduction. It is based on the income from any earnings, dividends, sales commissions, bonuses, or distributions from an individual retirement account (IRA) owed to individuals at the time of their death. Non-qualified annuities—annuities outside of an
What Is Euronext Dublin? The term Euronext Dublin refers to a cross-border stock exchange located in Ireland. It was formed in 2018 as a result of the merger between the Irish Stock Exchange and Euronext. The exchange provides Irish and international companies with access to European capital markets. Investors have access to a variety of
What is an Iron Butterfly? An iron butterfly is an options trade that uses four different contracts as part of a strategy to benefit from stocks or futures prices that move within a defined range. The trade is also constructed to benefit from a decline in implied volatility. The key to using this trade as
What Is an Iron Condor? An iron condor is an options strategy consisting of two puts (one long and one short) and two calls (one long and one short), and four strike prices, all with the same expiration date. The iron condor earns the maximum profit when the underlying asset closes between the middle strike prices
What Is Internal Rate of Return (IRR)? The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis. IRR calculations rely on the same formula
What Is Irrational Exuberance? Irrational exuberance refers to investor enthusiasm that drives asset prices higher than those assets’ fundamentals justify. The term was popularized by former Fed chair Alan Greenspan in a 1996 speech, “The Challenge of Central Banking in a Democratic Society.” The speech was given near the beginning of the 1990s dot-com bubble
What Is the Irrelevance Proposition Theorem? The irrelevance proposition theorem is a theory of corporate capital structure that posits financial leverage does not affect the value of a company if income tax and distress costs are not present in the business environment. The irrelevance proposition theorem was developed by Merton Miller and Franco Modigliani, and
What Is an Irrelevant Cost? Irrelevant costs are costs, either positive or negative, that would not be affected by a management decision. Irrelevant costs, such as fixed overhead and sunk costs, are therefore ignored when that decision is made. However, it’s critical for a manager to be able to distinguish an irrelevant cost in order
