What Is an Accumulated Earnings Tax? An accumulated earnings tax is a tax imposed by the federal government on companies with retained earnings deemed to be unreasonable and in excess of what is considered ordinary. Essentially, this tax encourages companies to issue dividends, rather than retain their earnings. The IRS allows for certain exemptions to…
The S&P 500 index and Dow Jones Industrial Average have sold off into deep support levels that should generate high-percentage bounces and opportune profits for highly skilled traders and investors. This will also mark an extremely dangerous period for novices and armchair technicians because it will be easy to get caught on the wrong side…
Energy funds have dropped to 10-year and all-time lows in reaction to a barrage of short- and long-term headwinds. While the coronavirus outbreak and downturn in crude oil prices have generated a good portion of this selling pressure, major political and socioeconomic forces are at work as well, with climate activists putting pressure on large…
Fossil Group, Inc. (FOSL) shares moved sharply lower after the company released weak financial results and guidance. Revenue fell 9.6% to $711.6 million, missing consensus estimates by $13.05 million, and net losses came in at six cents per share. Higher promotional activity and an inventory write-down depressed gross margins to 43.3% versus 53% a year…
Portfolio income is money received from investments, dividends, interest, and capital gains. Royalties received from investment property also are considered portfolio income sources. It is one of three main categories of income. The others are active income and passive income. Most portfolio income gets favorable tax treatment. Dividends and capital gains are taxed at a…
What Is Musharakah? Musharakah is a joint enterprise or partnership structure in Islamic finance in which partners share in the profits and losses of an enterprise. Since Islamic law (Sharia) does not permit profiting from interest in lending, musharakah allows for the financier of a project or company to achieve a return in the form…
The heightened volatility in global equities over the past several trading sessions has asset prices in nearly every sector market heading toward long-term support levels. Most active traders have been on the lookout for buying opportunities, and one of the sectors that has been consistently popping up on radars is technology. In the paragraphs below,…
Medical software companies are involved in building and delivering products, systems, services, or solutions within a medical space. These companies solve a myriad of customer needs. Key Takeaways Companies in the medical software space provide a number of solutions for related companies, including networking and record-keeping solutions, as well as software for medical research. Investors…
What Is Rational Behavior? Rational behavior refers to a decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual. The assumption of rational behavior implies that people would rather take actions that benefit them versus actions that are neutral or harm them. Most classical…