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please define the "tax shelter"
glossary FAQ: glossary.
S. Z. From United States
01 January, 2010
"tax shelter " is A legal method of minimizing or decreasing an investor's taxable income and, therefore, his or her tax liability. Tax shelters can range from investments or investment accounts that provide favorable tax treatment, to activities or transactions that lower taxable income. The most common type of tax shelter is an employer-sponsored 401(k) plan.
Tax authorities watch tax shelters carefully. If an investment is made for the sole purpose of avoiding or evading taxes, you could be forced to pay additional taxes and penalties. Tax minimization (also referred to as tax avoidance) is a perfectly legal way to minimize taxable income and lower taxes payable. Do not confuse this with tax evasion, the illegal avoidance of taxes through misrepresentation or similar means. Visit ForexWebTrader
please define "leg"
glossary FAQ: glossary.
Allan R. From Brockton, United States
09 June, 2009
a "leg " is 1. Term describing an order entry technique used by brokers. A leg occurs when a broker executes contingent orders in separate phases, thus increasing the risk for price swings through time delays.
2. A description of different aspects in a combination option.
1. An example is when a broker attempts to execute an option straddle order as two separate transactions. The possibility for profit and loss occurs though the fluctuating price of the options.
Sometimes referred to as a leg plant.
2. A straddle has two legs, one put and one call. Visit dbFX