Related Words

After-Tax Basis: The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond.

Fixed Price Basis: Payments of a fixed, equal amounts paid to an insurance company for insurance or an annuity.

Flow-Through Basis: Government bonds that when owned at the time of death are acceptable at par in payment of federal estate taxes.

Formula Basis: The form required by the NASD to report equity transactions after the market's regular hours.

Fare Basis (Code): The sometimes confusing code or codes on which the price of an airline ticket is based. Some itineraries contain many different codes. Most will indicate whether a fare is refundable or not. . . . View Full Definition

Discounted Basis: The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: . . . View Full Definition

Cost Basis: The cost basis is the original price of an asset — usually the purchase price plus commissions. You use the cost basis to calculate capital gains and capital losses, depreciation, and return . . . View Full Definition

Depreciable Basis: In investment real estate only structures can be depreciated. The depreciable basis is the original basis less the value of the land.

Fractional Basis: Each property in the improvement district is charged a prorated share of the total amount of the special tax assessment. The share is determined either on a fractional basis (four houses may . . . View Full Definition

Fare Basis: Conditions, including service class and ticketing provisions, that determine a fare. Fare basis is designated by identifying letters and/or numbers on a ticket.