What are Taxable Investment Accounts?

Taxable investment accounts are investment accounts that are taxed at a standard rate. They do not have tax-advantaged benefits.

What is a Share of Stock?

A share of stock is a unit of investment that represents ownership in an entity. Shares are usually issued when companies or funds want to raise capital.

What is a Shareholder?

A shareholder is any person, company or organization that owns one or more shares of a company. This ownership stake is an investment vehicle.

What Is Short Selling?

Short selling hopes prices decrease so they can buy back the shares at a lower price and keep the difference. This carries high risk.

What is a Sole Proprietorship?

A sole proprietorship is owned by an individual, and the individual is responsible for all debts of the business. It is not a separate entity.

What is the Securities and Exchange Commission (SEC)?

The Securities and Exchange Commission (SEC) is a federal organization that governs and enforces the laws of the security industry to protect investors.

What is Salvage Value?

Salvage value is the estimated book value of a depreciable asset at the end of its expected useful life that helps calculate depreciation.

What is Straight-Line Depreciation?

Straight-line depreciation is calculated by subtracting the salvage value from the asset’s cost and dividing it by the years estimated for its useful life.