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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Conduit Theory


If you try really, really hard, you conduit. Sorry, we couldn't resist. Conduit Theory relates to the tax treatment of an investment company - the basic idea is that if the vehicle passes through 90% or more of its net income to its shareholders, then it won't be taxed on its income; instead, the income (and losses, if any) will be attributed directly to the investors.