Turnover rate

Definition:

Measures trading activity during a particular period. Portfolios with high turnover rates incur higher transaction costs and are more likely to distribute capital gains, which are taxable to nonretirement accounts.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Tenants by Entireties (TEN ENT)

Joint ownership of property or securities by a husband and wife where, upon the death of one, the property goes to the survivor.

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