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Definition of Windfall Profits

What is Windfall Profits?

Definition of Windfall Profits Windfall profits are any type of additional income over expenses that are completely unexpected. Explanation of Windfall Profits When real estate property prices rise dramatically, the owner can make a significant amount of profit by selling that property. This sudden and unexpected rise in profits is called windfall profit. Many countries […]
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Definition windfall-shares

What is Windfall Shares?

Definition of Windfall Shares Windfall shares are the shares given for free to insiders of a society, a firm or a company when that same society, firm or company is undergoing the process of “demutualization”. Explanation of Windfall Shares Demutualization is the process by which a customer-owned mutual organization (mutual) or co-operative changes legal form […]
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DEFINITION Windfall-tax

What is Windfall Tax?

Definition of Windfall Tax It is a tax imposed by a government on those companies who make excessive profits, usually by exploiting monopoly. Explanation of Windfall Tax The benefits of a windfall tax include proceeds being directly used by governments to support funding for social programs. However, those against windfall taxes claim that they reduce […]
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Definition Winiding-Up

What is Winding Up?

Definition of Winding up It is a legal process of closing down a company where it liquidates its assets and pay off to creditors. Explanation of Winding up The liquidation or winding up a company is a process through which life of company and all its affairs is wound up. The property administered for benefits […]
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Definition window-dressing

What is Window Dressing?

Definition of Window Dressing A company can use window dressing when preparing financial statements to improve the appearance of its performance or liquidity. Explanation of Window Dressing Window dressing may consist of changing asset depreciation or valuation policies, making short-term borrowings, or engaging in sales and leaseback transactions at the end of a period. By […]
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Definition withdrawal

What is Withdrawal?

Definition of Withdrawal It is a transaction in which a customer receives back money he/she had previously deposited at a bank, pension, or trust. Explanation of Withdrawal When one makes a withdrawal on a pension or similar plan, it may carry a penalty depending on the pension’s rules. For example, one must usually be of […]
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Definition of withdrawal-penalty

What is Withdrawal Penalty?

Definition of Withdrawal Penalty A price/penalty paid by an investment holder (of fixed-term) at time of withdrawing cash before the maturity date or agreed upon time. For instance, a tax-deferred retirement plan before 59 and a half years of age. Explanation of Withdrawal Penalty Usually, individual deposits money into Individual Retirement Arrangements (IRA) and then […]
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