Agency Theory?
Agency theory is a way to analyze relationships where one party (the principal) hires another (the agent) to act on its behalf. The theory…
Agency Problem: Definition, Examples, and Ways to Minimize Risks
An agency problem (also called a principal–agent problem) is a conflict that can arise when one person or group (the principal) hires another (the…
Agency Costs? Included Fees and Example
An agency cost is a loss or expense that shows up when one person (the agent) makes decisions on behalf of another (the principal)…
Agency Bond: Definition, Types, and Tax Rules
An agency bond (also called agency debt) is a fixed-income security issued either by a U.S. federal government department other than the Treasury or…
Agency by Necessity: Meaning in Estate Planning
Definition – Agency by necessity is a court-recognized situation in which one person is permitted to act on behalf of another who cannot give…
AG (Aktiengesellschaft)? Definition, Meaning, and Example
An Aktiengesellschaft (AG) is the German legal form for a public limited company — a business whose ownership is divided into shares that can…
After-Tax Income: Overview and Calculations
• After-tax income is the cash left after you subtract income taxes from your gross income. In other words, it is the money an…
After-Tax Contribution: Definition, Rules, and Limits
• After-tax contribution: money placed into a retirement or investment account after income taxes have already been taken out of those earnings. You do…
After-Hours Trading: How It Works, Advantages, Risks, and Example
• After-hours trading is trading that happens after the major U.S. stock exchanges finish their normal session. Regular U.S. equity trading normally ends at…
After-Tax Real Rate of Return: Definition and How to Calculate It
• After-tax real rate of return = the investment gain remaining after paying taxes and after removing the loss of purchasing power from inflation.…