Definition of Unearned Income

Unearned income is any income received by an individual from an investment such as dividends and interest income.

Applying "Unearned Income" to Securities Exams:

Wages, salaries, tips and bonuses are all examples of earned income. Income that a person receives in exchange for the services they provide in the work place. Investment income received from stocks, bonds and other investments is considered to be unearned income.

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