Related Words

Agency Incentive Arrangement: A means of compensating the broker of a program trade using benchmark prices for issues to be traded in determining commissions or fees.

Incentive Payments: Direct payments made to producers of wool and mohair, which were similar to deficiency payments made to producers of grains and cotton. The incentive payment rate was the percentage needed t . . . View Full Definition

Incentive Pay Plan: A plan providing additional compensation intended to serve as an incentive for excellent performance, exceeding productivity goals or standards, as well as other contributions in accordance . . . View Full Definition

Incentive Stock Option: An employee stock option plan that allows options to be granted or exercised on a tax-deferred basis. All gains on options are taxed only when the holder sells the stock.

Incentive Stock Option (ISO): Corporate executives may be granted incentive stock options (ISOs), also called qualifying stock options. These options aren't taxed when they're granted or exercised, but only when the unde . . . View Full Definition

Individual Retirement Arrangement (IRA): An individual retirement arrangement (IRA), which may be set up as either an account or an annuity, allows people with earned income to contribute to a tax-deferred traditional IRA or a tax- . . . View Full Definition

Incentive Zoning: Zoning that offers incentives to developers, such as retail shops on the first floor of multistory office buildings if a plaza for public use is included.

Incentive Travel: (1) a trip offered as a prize, particularly to stimulate the productivity of employees or sales agents. (2) the business of operating such travel programs.

Incentive Pay: Additional compensation used to motivate and reward employees for exceeding performance or productivity goals.

Incentive Fee: A daytrader, or a speculator who buys and sells the same security on the same day.