What Is a Bankruptcy Discharge? A bankruptcy discharge, also known as a discharge in bankruptcy, refers to a permanent court order that releases a debtor from personal liability for certain types of debts. It is sometimes referred to simply as a discharge and comes at the end of a bankruptcy. After it is issued, the
What Is Disclaim? Disclaim, in a legal sense, refers to the renunciation of an interest in, or an acceptance of, inherited assets, such as property, by way of a legal instrument. Key Takeaways Disclaim, in a legal sense, refers to the renunciation of an interest in, or an acceptance of, inherited assets, such as property
What Is a Disclaimer Trust? A disclaimer trust is a type of trust that contains embedded provisions, usually included in a will, allowing a surviving spouse to put specific assets under the trust by disclaiming ownership of a portion of the estate. Disclaimed property interests are then transferred to the trust, without being taxed. Key
What Is Disclosure? In the financial world, disclosure refers to the timely release of all information about a company that may influence an investor’s decision. It reveals both positive and negative news, data, and operational details that impact its business. Similar to disclosure in the law, the concept is that all parties should have equal access
What Is a Disclosure Statement? For retirement accounts, a disclosure statement is a document explaining the rules of a financial transaction in plain, nontechnical language. An IRA plan administrator must provide a disclosure statement to the IRA owner at least seven days before the IRA is established or at the time the IRA is established
What Is Discount to Net Asset Value? A discount to net asset value is a pricing situation that occurs when an exchange-traded fund (ETF) or mutual fund’s market trading price is lower than its daily net asset value (NAV). Several factors may trigger a discount, including instances where the market has a pessimistic future outlook on the underlying
What Is a Discount Bond? A discount bond is a bond that is issued for less than its par—or face—value. Discount bonds may also be a bond currently trading for less than its face value in the secondary market. A bond is considered a deep-discount bond if it is sold at a significantly lower price
What Is a Discount Broker? A discount broker is a stockbroker who carries out buy and sell orders at reduced commission rates compared to a full-service broker. However, a discount broker does not provide investment advice or perform analysis on a client’s behalf, unlike a full-service broker. Before the emergence of better communications technology, only individuals with a
What Is Discounted After-Tax Cash Flow? The discounted after-tax cash flow method is an approach to valuing an investment by assessing the amount of money generated and taking into account the cost of capital along with the applicable marginal tax rate. Discounted after-tax cash flow is similar to simple discounted cash flow (DCF), but here
What Is Discounted Future Earnings? Discounted future earnings is a valuation method used to estimate a firm’s worth based on earnings forecasts. The discounted future earnings method uses these forecasts for the earnings of a firm and the firm’s estimated terminal value at a future date, and discounts these back to the present using an appropriate
