Thursday, March 17, 2011

IB Glossary

Subsidy
Government financial assistance to a domestic producer

Systematic risk
Movements in a stock portfolio’s value attributable to macroeconomic forces affecting all firms in an economy, rather than factors specific to an individual firm.

Tax haven
A country with exceptionally low, or no, income taxes.

Tax treaty
An agreement specifying what items of income will be taxed by the authorities of the country where the income is earned.