#Efficient market-- a market that allocates funds to their most productive uses as a result of competition among wealth maximizing investors that determines and publicize his prices that are believed to be close to their true value. #Business taxes ordinary income-- income earned through the sale of the firms goods or services. #Average tax rate-- a firm's taxes divided by its taxable income. #Marginal tax rate-- the rate at which additional income is taxed. #Double taxation-- occurs when the already once taxed earnings of a corporation are distributed as cash dividends to stockholders, who must pay taxes of up to a maximum rate of 15% on them intercorporate. #Dividends-- dividends received by one corporation on common and preferred stock held in other corporations. #Capital gain-- the amount by which the sale price of an asset exceeds the assets of initial purchase price.