After-Tax Yields financial definition of After-Tax Yields. After-Tax Yields finance term by the Free Online Dictionary.

Aftertax Yield

An investment's rate of return after subtracting all applicable taxes, expressed as a percentage. Most analysts prefer to look at afterax yield instead of pretax yield when weighting investment decisions. Mutual funds are required to disclose their aftertax yields to provide the most accurate picture possible. See also: Current yield.

aftertax yield

The rate of return on an investment after taxes have been calculated and subtracted. Aftertax yield, as opposed to pretax yield, is generally a preferred basis for comparing investment alternatives.

Case Study Utilizing aftertax rather than pretax yield to evaluate investments is a universal rule that applies to stocks, bonds, real estate, and mutual funds. In 2001 the Securities and Exchange Commission adopted a rule requiring that mutual funds disclose in their prospectuses aftertax returns based on stipulated formulas. The SEC order also required certain funds to include standardized aftertax yields in advertisements and other sales materials. The order was prompted by the belief that many investors lack a clear understanding of the impact of taxes on their mutual fund investments. Mutual funds regularly tooted their horns regarding their pretax returns, but SEC studies indicated substantial differences existed in the extent to which these returns were taxed. The tax consequences of distributions are especially puzzling to many mutual fund shareholders who are taxed on distributions based on realized gains from which they frequently did not benefit. To provide investors with more accurate information, the SEC requires that mutual funds present aftertax returns in two ways: on fund distributions only, which would apply to investors who continued to hold their mutual fund shares, and on fund distributions and a redemption of fund shares, which would apply to investors who liquidated their mutual fund shares. In each case aftertax returns are presented as if the shareholder is in the highest applicable federal income tax rate. Pretax and aftertax returns are presented using a standard format.

Mentioned in	?		Financial browser	?		Full browser	?
Corporate Equivalent Money Market Fund Tax-Equivalent Yield			After Acquired Clause after acquired property clause After Date After Hours Trading After Sight After Tax Operating Income After the Bell After-Acquired Clause After-Acquired Property After-Hours Dealing or Trading After-Hours Market After-Hours Market Close After-Hours Trading After-Sales Service After-Tax After-Tax Basis after-tax cash flow After-Tax Contribution after-tax equity yield after-tax income after-tax proceeds from resale After-Tax Profit Margin After-Tax Real Rate of Return After-Tax Return After-Tax Value After-Tax Yields Aftermarket Afternoon Drive Aftertax Profit Aftertax Yield Afvloeiingsregeling AG Against Against the Box Against the Grain Agate Line Age & Life-Cycle Segmentation Age Change Age Discrimination Age Discrimination in Employment Act Age Limit Age Relief Age Setback Age-Earnings Profile Age-Weighted Profit-Sharing Plan Aged Fail Agence Canadienne de Developpement International Agence de Cooperation Culterelle et Technique Agence de notation Agencia calificadora del riesgo crediticio Agencia classificadora de risco de credito			After-Tax Incomes After-Tax Incomes After-Tax Incomes After-Tax Net Present Value After-Tax Operating Income After-Tax Proceeds from Re-Sale after-tax proceeds from resale After-Tax Profit After-Tax Profit After-Tax Profit After-Tax Profit After-Tax Profit After-tax profit margin After-Tax Profit Margins After-Tax Profits After-Tax Profits After-Tax Profits After-Tax Profits After-Tax Profits After-tax real rate of return After-Tax Real Rates of Return After-Tax Real Return After-Tax Real Returns After-Tax Return After-Tax Return on Equity After-Tax Returns After-Tax Value After-Tax Values After-Tax Yield After-Tax Yield After-Tax Yields After-the-Bell After-The-Fact Funding After-the-Fact-Payroll after-treatment After-wit After-witted After... After... After... After... ~Wasureemu Kizuna~ After... ~Wasureemu Kizuna~ After... ~Wasureemu Kizuna~ afterbirth afterbirth afterbirth afterbirths afterbirths afterbirths afterblow afterbody afterbody afterboil afterbrain afterbrain afterbrain afterbreak AfterBurn AfterBurn afterburner afterburner

Aftertax Yield (redirected from After-Tax Yields)

Aftertax Yield
(redirected from After-Tax Yields)