500 Shareholder Threshold: What it is, How it Works
Definition and quick summary – 500 shareholder threshold: an historical rule under Section 12(g) of the Securities Exchange Act of 1934 that required a…
2-2-8 Adjustable-Rate Mortgage (2/28 ARM): Meaning, How It Works
• A 2/28 ARM is a 30-year home loan that gives you a fixed interest rate for the first two years, then switches to…
11th District Cost of Funds Index: What It is, How It Works
• The 11th District Cost of Funds Index (COFI) was a monthly benchmark that measured the average interest cost paid by savings institutions operating…
90-Day Letter: What It Means, How it Works
A “90‑day letter” (also called a Notice of Deficiency) is an official IRS notice that tells a taxpayer the agency has found an error…
90/10 Investing Strategy: Definition, How It Works, Pros & Cons
• The 90/10 strategy is a simple asset-allocation rule that directs about 90% of an investor’s portfolio into broad, low-cost U.S. stock index funds…
8(a) Firm: Meaning, Purpose, Qualifications
An 8(a) firm is a U.S. small business that the Small Business Administration (SBA) has accepted into its 8(a) Business Development Program because the…
83(b) Election: Tax Strategy and When and Why to File
• An 83(b) election is a small, time‑limited tax choice under Internal Revenue Code section 83. It lets a recipient of restricted equity (shares…
The 80-20 Rule (aka Pareto Principle): What It Is and How It Works
• The 80–20 rule (Pareto principle) is a simple heuristic: a relatively small share of causes (about 20%) often accounts for a large share…
SEC Form 8-K: Definition, What It Tells You, Filing Requirements
• Form 8‑K (the “current report”) is the Securities and Exchange Commission (SEC) filing public companies must submit to disclose unscheduled, material events or…
Understanding 52-Week High/Low: Definition, Trading Role, and Examples
• The 52-week high and 52-week low are the highest and lowest closing prices a security has recorded during the prior 52 weeks (one…