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Many investors prefer to own physical gold and silver instead of exchange-traded funds (ETFs) that invest in these precious metals. While the tax implications of owning and selling ETFs are very straightforward, not many people fully understand the tax implications of owning and selling physical bullion. Below is a description of how these investments are taxed, as well as their …

What Is a Foreign Bank Branch? A foreign bank branch is a type of foreign bank that is obligated to follow the regulations of both the home and host countries. Because the foreign bank branch has loan limits based on the total bank capital, they can provide more loans than subsidiary banks. That is because the foreign bank branch, while …

What Is the Look-Ahead Bias? Look-ahead bias occurs by using information or data in a study or simulation that would not have been known or available during the period being analyzed. This can lead to inaccurate results in the study or simulation. More importantly, a look-ahead bias can unintentionally sway simulation results closer into line with the desired outcome of …

WHAT IS THE Non-Resident Entertainers’ Tax Non-resident entertainers’ tax is a state tax levied against performers whose legal residence is outside of the state where the performance is given. BREAKING DOWN Non-Resident Entertainers’ Tax Non-resident entertainers’ tax is a type of state tax that requires a certain percentage of any gross earnings from a performance be withheld for the state the …

What Is IRS Publication 501? IRS Publication 501 is published by the Internal Revenue Service (IRS) that covers tax exemptions and the amount of the standard deduction. This informational document also explains who must file a tax return and what filing status should be used, as well as information on dependents and how to account for them when filing a …

What is IRS Publication 908 IRS Publication 908 is a document published by the Internal Revenue Service (IRS) that provides information on how federal income tax should be treated in the case of bankruptcy. IRS Publication 908 does not cover bankruptcy laws in detail, and is designed to give basic information. BREAKING DOWN IRS Publication 908 The bankruptcy laws are …

Additional equity financing increases the number of outstanding shares for a company. The result can dilute the value of the stock for existing shareholders. Issuing new shares can lead to a stock selloff, particularly if the company is struggling financially. However, there are cases when equity financing can be seen as favorable, such as when the funds are used to …

Stock investors constantly hear about the wisdom of diversification. This simply means don’t put all your eggs in one basket. Diversification helps reduce risk and generally leads to a better return on investment. That said, there are many ways to diversify. How you choose to do it is up to you. Your goals for the future, your appetite for risk, and your personality are all …

What Is a Wrap Account? A wrap account is an investment portfolio that is professionally managed by a brokerage firm for a flat fee that is charged quarterly or annually. The fee is based on total assets under management (AUM). It is comprehensive, covering all administrative, commission, and management expenses for the account. Wrap fees range from about 1% to …