Effective gross income

Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.

Similar financial terms

Gross margin
The percentage of gross profit (sales minus direct costs) to sales, which should remain fairly consistent when sales rise or fall.

Gross profit
The profit remaning after direct costs are subtracted from sales, but before any expenses are deducted.

The aggregate, cumulative or total amount is a quantity measure. It can refer to total long position, total short position, the total par position, total market value, the total futures contract equivalency position or other specified categorization.

Earned income
The compensation from participation in a business, including normal remuneration (wages, salary and commissions) and bonuses.

Underwriting income
For an insurance company, the difference between the premiums earned and the costs of settling claims.

Taxable income
Gross income less a set of deductions such as allowances, deeds of covenants, and losses.

Spread income
Also called margin income, the difference between income and cost. For a depository institution, the difference between the assets it invests in (loans and securities) and the cost of its funds (deposits and other sources).

Net income
The company's total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses.

Monthly income preferred security (MIP)
Preferred stock issued by a subsidiary located in a tax haven. The subsidiary relends the money to the parent.

Income Statement
This is company's accounting statement that shows its Income, Expenses, and Profit (or Loss) over a period of time. It is a picture of the financial performance of a company. It is sometimes referred to as a Profit & Loss (P&L) Statement. It allows a compay (or others) to compare its performance to that of other similar businesses. It tells shareholders how well their company is doing with respect to generating profits and earnings per share.

Premium income
The income made by an insurance company resulting from premiums paid for insurance products.

Household income
The total level of income earned by all the households in the economy. This will be a significant part of the overall level of National Income.

National income
The value of goods and services created by a country in one year.

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Premium bond

A bond that is selling for more than its par value.

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