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
- Municipal BondA loan to a state or local government whose interest is often free from federal income tax.
- Capital Gains TaxA tax on the profit you make when you sell an investment or asset for more than you paid for it.
- Tax-Advantaged AccountAn account offering tax breaks on contributions, growth, or withdrawals to encourage saving for goals like retirement.
- Dividend TaxThe tax owed on payments companies distribute to shareholders, with rates depending on the type of dividend.
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Plain-English education — not personalized legal, tax, or investment advice.