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Structuring

• Is a term which is used several ways. It can refer to arranging a deal. Structuring can refer to rearrange the cash flow components, both interest and principal, into new streams or structures. Structuring is the name for breaking down currency payments below treasury department reporting limits. The usual motivation for this is avoidance of income taxes or cloaking ownership. Here, cash and postal money orders are considered as currency.

 
 Embedded terms in definition
 Cash flow
Cash
Currency
Income
Interest
Principal
 
 Referenced Terms
 Agency costs: The incremental costs of having an agent make decisions for a principal.Costs borne by shareholders to prevent or minimize agency problems and to contribute to the maximization of the owners' wealth. They include monitoring and bonding expenditures, opportunity costs, and Structuring expenditures.

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Don't ever take a fence down until you know why it was put up. - Robert Frost (1874-1963)

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