Category: Business News

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 pay off debt or improve the company. Key Takeaways Additional equity financing increases a company’s outstanding shares and often dilutes the stock’s value for existing shareholders. Issuing new shares can lead to a stock selloff, particularly if the company is

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 designed by Congress to give honest debtors a financial fresh start. A bankruptcy filing creates the “bankruptcy estate”, which consists of all of the assets the individual or entity owns on the date the bankruptcy petition was filed. The bankruptcy

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 return. IRS Publication 501 can be found on the IRS website. Key Takeaways IRS Publication 501 outlines tax information regarding how to deal with dependents, the standard deduction, tax exemptions, and filing status. Dependents, deductions, and exemptions will all impact

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 performance occurred in. A non-resident entertainer is typically defined as an individual, partnership or corporation that entertains people for compensation by performing before a live audience in an area outside their legal residence. The rate for the non-resident entertainers’ tax is

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 the test. This leads to economists and analysts putting too much confidence in their models and the ability of the model to predict and mitigate future events. Investors also need to be aware of the potential for look-ahead bias when

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 possibly small in one market, is technically part of a larger bank. Hence, it enjoys the capital base of the larger entity. Key Takeaways A foreign bank branch is a type of foreign bank that is obligated to follow the