Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 4 terms
The share of profits a company puts back into the business rather than distributing.
Sustainable growth is roughly incremental return multiplied by this. A high return with nowhere to deploy it is worth little.
The risk that maturing money must be redeployed at a lower rate than before.
A 7.5% deposit maturing into a 5.5% world. Laddering maturities blunts it.
A specified bank account into which the unutilised part of a gain must be deposited before the due date for filing the return, to keep a reinvestment exemption alive until the purchase or construction is completed.
The deadline is for getting the money in, not for spending it. Buying the house comfortably inside the two-year window does not rescue a deposit that was never made, and money left visibly untouched in a savings account or a fixed deposit is not a deposit under the scheme.
The stated approach determining how much profit is returned to shareholders.
In a PSU it may follow the promoter’s fiscal calendar rather than the business’s reinvestment needs.