Bribe

AAA

DEFINITION of 'Bribe'

An illegal payment from one party to another, usually in return for a legal or financial favor. Bribes are often made to public officials or heads of other regulatory agencies in order to escape legal convictions or unfavorable rulings, or as an incentive for the payee to bend or overlook pertinent regulations that would otherwise restrict the payer.

INVESTOPEDIA EXPLAINS 'Bribe'

Bribes and kickbacks of any kind are, obviously, nondeductible. Bribes that take the form of kickbacks to insurance or securities customers are known as rebating, and can result in disciplinary actions by the regulatory authorities.

RELATED TERMS
  1. Kickback

    The payment of something of value to an individual with the goal ...
  2. Rebate

    1. In a short-sale transaction, the portion of interest or dividends ...
  3. Price Fixing

    Establishing the price of a product or service, rather than allowing ...
  4. Financial Action Task Force (FATF)

    An intergovernmental organization that designs and promotes policies ...
  5. Banker Trojan

    A malicious computer program designed to gain access to confidential ...
  6. Black Market

    Economic activity that takes place outside government-sanctioned ...
Related Articles
  1. Economics Basics
    Economics

    Economics Basics

  2. Early Monopolies: Conquest And Corruption
    Personal Finance

    Early Monopolies: Conquest And Corruption

  3. A History Of U.S. Monopolies
    Personal Finance

    A History Of U.S. Monopolies

  4. What's the difference between legal ...
    Investing

    What's the difference between legal ...

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center