A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Capital Gains TaxA tax on the profit you make when you sell an investment or asset for more than you paid for it.
- Dividend TaxThe tax owed on payments companies distribute to shareholders, with rates depending on the type of dividend.
- Index FundA fund that owns a broad slice of the market at low cost — the backbone of most investing.
- Unearned IncomeMoney that comes from sources other than working, such as interest, dividends, or capital gains.
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
More in Taxes
Plain-English education — not personalized legal, tax, or investment advice.