Investment Income

Definition

  • This is income earned on investments you make. Investment income includes interest, dividends and capital gains.

Synonyms
revenue stream, earned money, dividends, income from investments

Related Terms and Acronyms

  • Annuity Definition,
    • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
    • A financial instrument that disperses a number of payments over a set period of time.
  • Capital Gain (CG) Acronym, Important,
    • The profit made by the seller when real estate or other capital assets are sold. Capital gains are taxed more favourably than earned income. However, this can be dependent on your tax bracket and the length of time you owned the asset before it was sold. You could pay approximately one-third to one-half less tax than you would pay on the same amount of earned salary.
  • Capital Gains Tax (CGT) Acronym, Canada,
    • A tax on profits from the sale of real estate or investments.
  • Combined Ratio After Policyholder Dividends Definition,
    • A method of measuring the profitability of an insurance company's underwriting.
  • Dividend Definition,
    • Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
  • Earned Income Definition,
    • Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income.
  • Fixed Annuity Definition,
    • An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
  • Income Property Definition,
    • Real estate developed or improved to produce income. Also referred to as "non-owner occupied property" or "rental property."
  • Investment Definition,
    • Something you put your money into in order to make money.
  • Net Income (NI) Acronym, Very Important,
    • The difference between effective gross income and expenses. The term is qualified as net income before depreciation and debt.
  • Net Interest Margin (NIM) Acronym,
    • Net interest income (the difference between interest income and interest expense) as a percentage of average total assets.
  • Open-end Fund Definition,
    • A mutual fund that allows investors to buy or sell shares in the fund at their net asset value each business day.
  • Operating Cash Flow (OCF) Acronym,
    • The money a company generates from its business operations. This revenue excludes costs from certain investments.
  • Ordinary Dividends Definition,
    • The distribution of a company's profits that are subject to full taxation.
  • Ordinary Income Definition,
    • Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business.
  • Other Income/Expenses Definition,
    • Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.
  • Passive Income Definition,
    • Income coming in on a regular basis, with little or no maintenance.
  • Profit Definition,
    • When revenues exceed expenses.
  • Return Definition,
    • Any increase in value or in income you earn on purchase or investment.
  • Royalty Income Definition,
    • Payment for the use and exploitation of certain kinds of property, such as artistic or literary works, patents and mineral rights.
  • Security Definition,
    • Property designated as collateral.
    • A tradable financial implement that represents ownership, the rights to ownership or debt.
    • A document stating ownership of a stock or bond.
  • Segregated Fund Definition,
    • Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.
  • Taxable Income Definition,
    • Income that is subject to taxation after accounting for adjustments, exemptions, and deductions.
  • Unearned Income Definition,
    • Income such as interest, dividends, capital gains or rents, as opposed to earned income, such as wages, tips and salaries.
  • Yield-to-Maturity (YTM) Acronym,
    • The internal rate of return on an investment. Typically takes into account all investment returns and their timing.
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