Important Financial Investment Terms
Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Alternative Minimum Tax'
A method of calculating income tax that is more restrictive by disallowing specific deductions, credits, and exclusions. Intended to ensure that individuals, trusts, and estates that benefit from tax preferences do not escape all federal income tax liability. Taxes both ways must be calculated and payment is based on the greater of the two.