Glossary of Terms

W-2 Form

A W-2 form is a document that an employer provides to its employee used to file taxes with the IRS on an annual basis. Employers are required to send W-2 forms to all employees to whom they pay salaries or wages before January 31 each year, providing the employee enough time to file his or her taxes prior to tax day in April.

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War Bonds

War bonds are issued by a government to help finance military activities in times of war. These bonds do not pay interest and have a below-market-rate of return. US Government war bonds were issued at 50-75% of face value with a 10-year maturity. Because of low returns, governments must appeal to its citizens to invest in war bonds.

In 1917, the US Government issued Defense Bonds, also called Liberty Bonds, which were the predecessor to war bonds. These bonds were used to help finance US military activities during World War I. The US Government raised $21.5 billion worth of Liberty bonds. The government was able to raise $180 billion worth of war bonds during World War II.

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Warranty Deed

Warranty deed is a document that may be used to legally transfer property. A warranty deed states that the owner can legally transfer the property and that no other

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Working Capital

Working capital is the difference between a firm’s current assets (e.g. cash, accounts receivable, inventory) and current liabilities (accounts payable, other liabilities due within one year). Working capital measures a company’s liquidity and efficiency in its operations. Firms with high levels of working capital are in an advantageous position to invest in current operations or expand the capacity of future operations via capital expenditure.

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Working Capital Safe Harbor

With the adoption of a 31-month working capital safe harbor for Qualified Opportunity Fund investments in Qualified Opportunity Zone Businesses that acquire, develop, or renovate a business property in a QOZ, QOFs now have an ample amount of time to deploy capital responsibly without being disqualified as a QOZB. In order to qualify as a working capital safe harbor, a QOF must have a written plan outlining the projected uses of capital to develop a business in a QOZ or acquire, develop, or renovate a property located in a QOZ.

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World Bank

The World Bank is a financial institution established to provide financing, advisory services and research to emerging markets and developing nations in support of economic advancement in public and private markets. Its key objectives are the reduction of poverty and fostering of economic development in nations around the world by providing low-interest loans, credits and grants to foster education, healthcare and infrastructure in developing nations.

The World Bank was created in 1944 following the Bretton Woods agreement near the end of World War II at a time when many nations needed financing to rebuild following the conflict.

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