basis
Definition 1
Purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes. This can be determined by several methods. For a purchased investment, the basis is the amount paid. If inherited, the basis is the value of the stock on the date of the original owner's death. If received as a gift, the basis is the amount that was originally paid for the investment, unless the market value of the investment on the date the gift was given was lower. also called cost basis or tax basis.
Definition 2
The difference between the cash price and the futures price of a given commodity.
Purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes. This can be determined by several methods. For a purchased investment, the basis is the amount paid. If inherited, the basis is the value of the stock on the date of the original owner's death. If received as a gift, the basis is the amount that was originally paid for the investment, unless the market value of the investment on the date the gift was given was lower. also called cost basis or tax basis.
Definition 2
The difference between the cash price and the futures price of a given commodity.
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Related Terms
basis trading
basis appears in these other terms
modified cash basis, after-tax basis, basis point, maturity basis, basis price, strong basis, Price Value of a Basis Point, cash basis, buying basis, basis swap
basis appears in the definitions of these other terms on BusinessDictionary.com
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