T A NASDAQ stock symbol specifying that the stock has warrants or rights.
T+1 (T+2,T+3) Abbreviations that refer to the settlement date of security transactions. The T stands for transaction date, which is the day the transaction takes place. The numbers 1, 2 or 3 denote how many days after the transaction date the settlement or the transfer of money and security ownership takes place.
TA Technical Analysis
Tactical Asset Allocation A portfolio strategy that involves taking advantage of market pricing anomalies or strong market sectors and following this, re-balancing the portfolio in order to maintain a long-term goal for asset allocation.
Taft-Hartley Act A Federal law that was enacted in 1947 that prohibited certain union practices and required improvement in union disclosure of financial and political dealings.
Tag Along Rights A contractual obligation used to protect a minority shareholder (usually in a venture capital deal). Basically, if a majority shareholder sells their stake, then the minority shareholder has the right to join the transaction and sell their minority stake in the company. Also referred to as co-sale rights.
Tailgating The action of a broker or advisor purchasing or selling a security for his or her client(s) and then immediately making the same transaction in his or her own account.
Take a Bath A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative position.
Take a Flier The slang term for a decision to invest in highly speculative investments.
Take or Pay A provision, written into a contract, whereby one party has the obligation of either taking delivery of goods or paying a specified amount.
Takedown 1. The price at which underwriters obtain securities to be offered to the public.
2. The portion of securities that each investment banker will distribute in a secondary or initial pubic offering.
Takeover A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
Takeunder A corporate takeover where the target firm is offered a price per share that is less than its current market value.
Taking the Street A slang phrase referring to the hedge fund tactic of buying large amounts of a particular stock from banks and brokers in an effort to clean out these institutions' inventory in a short period of time.
Tangible Asset An asset that has a physical form.
Tangible Net Worth Total assets less intangible assets and total liabilities.
Tape Is Late A situation on the trading floor where the trading on a stock is so heavy that the real-time ticker quotes are delayed by a minute or two.
Target Benefit Plan A benefit plan that is similar to a defined benefit plan in design in that contributions are based on projected retirement benefits. However, unlike a defined benefit plan, the benefits provided to participants at retirement are based on the performance of the investments, and therefore are not guaranteed.
Target Firm A firm that has been targeted by another firm for a takeover.
Tariff A taxation imposed on goods and services imported into a country. Also known as a duty tax.
Tax Anticipation Notes - TAN Securities issued in anticipation of future tax collections
Tax Bracket The rate at which an individual is taxed due to a particular income level.
Tax Court A court of law whose sole jurisdiction is to decide litigation involving federal income, death, and other taxes.
Tax Credit A dollar for dollar reduction in the tax payment required from a person.
Tax Evasion An illegal practice whereby an individual intentionally avoids paying their true tax liability. Anyone caught evading taxes is generally subject to criminal charges and substantial penalties.
Tax Haven A country that offers individuals and businesses little or no tax liability.
Tax Holiday A government incentive program that offers a tax reduction to foreign investors.
Tax Home An individual's primary place of work or residence. This is used when determining tax for travel or transportation expenses.
Tax Liability The total amount of tax that a person owes to the IRS after credits and payments are made by the taxpayer.
Tax Lien A claim imposed by the federal government to liquidate a persons property until owing tax and debt is fully paid.
Tax Lien Certificate A certificate of claim against property that has a lien placed upon it as a result of unpaid property taxes.
Tax Lot Accounting A record keeping technique that traces the dates of purchase and sale, cost basis, and transaction size for each security in your portfolio, even if you make more than one trade in the same security.
Tax Reform Act of 1986 Federal legislation that modified many significant aspects of the U.S. tax system.
Tax Return The tax form used to file income taxes to the IRS.
Tax Schedule A scale published by the IRS, it is used for taxpayers with taxable income over $100,000
Tax Shelter An investment selected mainly because it provides favorable tax treatment.
Tax Shield The reduction in income taxes that results from taking an allowable deduction from taxable income.
Tax Swap A method of crystallizing capital losses by selling losing positions and purchasing companies within similar industries that have similar fundamentals.
Tax Table A table that shows the amount of tax payable depending on an individual's income bracket.
Tax Year The 12 month period for which you are filing your tax return.
Tax-Exempt Interest Interest income that is exempt from federal income tax. Although it is not directly taxed, this income may still be required to determine other tax calculations such as social security benefits.
Taxable Gain The portion of a sale that is liable to taxation.
Taxable Income The amount of net income used in calculating income tax.
Taxes A levy on corporations or individuals that is enforced by a level of government in order to finance government activities.
Taylors Rule A guideline for interest rate manipulation. It was introduced by Stanford economist John Taylor in order to set and adjust prudent rates that will stabilize the economy in the short-term and still maintain long-term growth. This rule is based on 3 factors:
Tear Sheets Slang for the pages from the S&P stock reports summarizing business and financial information regarding thousands of public companies.
Technical Analysis A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts to identify patterns that can suggest future activity.
Technical Bankruptcy The state of a company or person who has defaulted on a financial obligation and would be declared bankruptcy if the creditor makes a claim through the courts.
Technical Rally An upward movement in a security's price following a declining trend. The movement is caused by technical as opposed to fundamental factors affecting sentiment.
Technically Strong Market A situation in which the stock market is rising on high volume or falling on low volume.
The Wealth Effect The premise that when the value of equities rises so do people's wealth and disposable income, making them more comfortable with spending.
The World Bank An international organization dedicated to providing financing, advice and research to developing nations to aid their economic advancement.
Theoretical Dow Jones Index A method of calculating a Dow Jones index (most often the DJIA) that assumes all index components hit their high or low at the same time during the day.
Theta The ratio of the change in an option price to the decrease in time to expiration.
Thin Market A market with few bid and ask offers. The market is characterized by low liquidity, high spreads, and high volatility. Also known as a narrow market.
Third Market Trading by nonexchange-member brokers/dealers and institutional investors of exchange-listed stocks. In other words, the third market is exchange-listed securities trading in the OTC market.
Third Market Maker A third-party firm willing to buy or sell stocks listed on exchanges at publicly quoted prices.
Third-Party Distributor The name given to institutions that sell or distribute mutual funds to investors for fund management companies without direct relation to the fund itself.
Thirty-Year Treasury A U.S. Treasury debt obligation that has a maturity of 30 years. The 30-year Treasury is the benchmark U.S. bond and one of the world's most closely watched financial instrument.
Thrift Bank A bank whose main purpose is to take deposits from consumers and make home mortgages.
Tick The minimum upward or downward movement in the price of a security.
Tick Index The number of stocks trading on an uptick minus the number of stocks trading on a downtick.
Tick-Test Rules Restrictions on when a short sale may be executed. Tick-test rules dictate that a short sale can be made only in two situations:
1. When the price of the particular stock is higher than the last trade price (an uptick).
2. In a case where there is no change in the last trade price. The previous trade price must be higher than the trade price that preceded it (a zero uptick or zero plus tick)
Ticker Tape A computerized device that relays financial information to investors around the world, including the stock symbol, the latest price, and volume on securities as they are traded.
Tide A metaphor for a long term market trend.
Tied Selling The provision of a product or service which is dependent on the purchase of a product from the same company or a related company.
Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves.
Tier 2 Capital A term used to describe the capital adequacy of a bank. Tier II capital is secondary bank capital that includes items such as undisclosed reserves, general loss reserves, subordinated term debt, and more.
Tiger Economy A nickname given to the economies of southeast Asia. Some of the tigers are Indonesia, Singapore, Malaysia, Thailand, South Korea, and China.
Tight Money When money or loans in a country are very difficult to obtain and, if you do have the opportunity, then interest rates are usually extremely high. Also known as dear money.
Time Decay It is the ratio of the change in an option price to the decrease in time to expiration.
Time Deposit A savings account or CD held for a fixed-term with the understanding that the depositor can only withdraw by giving written notice.
Time Segmented Volume - TSV A technical analysis indicator, developed by Worden Brothers Inc., that segments a stock's price and volume according to time intervals. The price and volume data are then compared to one another in order to uncover periods of accumulation (buying) and distribution (selling).
Time Value The portion of the option premium that is attributable to the amount of time remaining until the expiration of the option contract.
Time Value of Money The basic principle that money can earn interest, so something that is worth $1 today will be worth more in the future if invested. This is also referred to as future value.
Time-Weighted Rate of Return A measure of the compound rate of growth in a portfolio. Because this method eliminates the distorting effects created by inflows of new money, it is used to compare the returns of investment managers. When calculating, the effect of varying cash inflows is eliminated by assuming a single investment at the beginning of a period and measuring the growth or loss of market value to the end of that period.
Times Interest Earned - TIE A metric used to measure the ability for a company to meet its debt obligations. Times interest earned is calculated by taking EBIT and dividing by the total interest cost.
Tip from a Dip Advice from a person who claims to have inside information that will impact a stock's price but actually doesn't.
Tip Income Funds received over and above wages for services rendered. Also known as gratuities.
TND In currencies, this is the abbreviation for the Tunisian Dinar.
To Be Announced - TBA An underlying contract on a mortgage backed security to buy or sell a MBS which will be delivered at an agreed-upon date in the future.
Today's high The intra-day high trading price.
Today's low The intra-day low trading price.
Tokyo Stock Exchange - TSE The stock exchange headquartered in Tokyo, Japan.
Tombstone A written advertisement placed by investment bankers in a public offering of a security. It gives basic details about the issue and, in order of importance, the underwriting groups involved in the deal.
TOP In currencies, this is the abbreviation for the Tong P'anga.
Top Down Investing An investment approach where an investor looks at a country's economy before considering an industry to invest in. Next, they determine what industries or sectors will return well because of the economic conditions and, finally, they then buy stocks that are attractive within that industry.
Top Line A reference to sales or revenue.
Toronto Stock Exchange - TSX The largest stock exchange in Canada, traditionally home to a large number of natural resource companies.
Torpedo Stock A declining stock that will most likely continue to decline.
Total Cost Of Ownership - TCO In general, the purchase price of an asset plus the additional costs of operation.
Total Debt to Total Assets A metric used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. Calculated by adding short-term and long-term debt, and then dividing by a company's total assets.
Total Enterprise Value - TEV A valuation measurement used to compare companies with varying levels of debt. This is calculated as: TEV = Market Capitalization + Interest Bearing Debt + Preferred Stock - Excess Cash.
Total Return Swap Any swap in which the non-floating rate side is based on the total return of an equity or fixed income instrument with a life longer than the swap.
Total Shareholder Return - TSR 1. The total return of a stock to an investor (capital gain plus dividends).
2. The internal rate of return of all cash flows to an investor during the holding period of an investment.
Total Utility The full satisfaction of a consumer's wants or needs through the consumption of specific goods or services.
Touchline The highest bid and lowest ask at market for a particular security during a given time in the trading day.
Toxic Waste A slang term referring to securities that are unattractive due to certain underlying provisions or risks making them generally illiquid with poor pricing schemes and transparency.
Tracker Fund A type of mutual fund that provides the same returns as an index. The fund invests in all the companies within the index according to a market value weighting.
Tracking Error A divergence between the price behavior of a position or portfolio and the price behavior of a benchmark. This often is in the context of a hedge that did not work as effectively as intended, instead creating an unexpected profit or loss.
Tracking Stock A stock issued by a parent company to create a financial vehicle to track the performance of a particular division or subsidiary.
Trade 1. A transaction involving the sale and purchase of a security.
2. In general, the buying and selling of goods and services.
Trade Date The date on which a security trade occurs.
Trade Finance The science that describes the management of money, banking, credit, investments, and assets for international trade transactions.
Trade or Fade Rule An option exchange rule that prevents the occurrence of a trade through.
Trade Sanction A trade penalty imposed by one nation onto one or more other nations.
Trade Through The completion of a client's order at a price inferior to the best posted bid or ask.
Trade Working Capital The difference between current assets and current liabilities directly associated with everyday business operations.
Trade-Weighted Dollar A representation of the foreign currency price of the U.S. dollar or the export value of the U.S. dollar.
Trademark A symbol, word, phrase, logo, or combination of these that legally distinguishes one company's product from any others. Any infringement on a trademark is illegal and therefore grounds for the company owning the trademark to sue the infringing party. ;
Trading Ahead A trade transacted from a specialist's account even though there is a public order that offsets the trade.
Trading Below Cash When a company's total share value is less than its cash minus debts.
Trading Book The portfolio of financial instruments held by a brokerage or bank. The financial instruments in the trading book are purchased or sold to facilitate trading for their customers, to profit from spreads between the bid/ask spread, or to hedge against various types of risk.
Trading Curb A temporary restriction on program trading in a particular security or market, usually to reduce dramatic price movements. Also known as a collar or circuit breaker.
Trading Dollars Slang for a company that is spending just as much money as it is making on a product that it develops.
Trading Halt A pause in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. During a trading halt, open orders may be cancelled and options may be exercised. A trading halt gives all investors equal opportunity to evaluate news and make buy, sell, or hold decisions on that basis. A trading halt may also be imposed for purely regulatory reasons.
Trading Range The spread between the high and low prices traded during a period of time.
Traditional IRA An IRA that is not a Roth IRA or a SIMPLE IRA. Individual taxpayers are allowed to contribute 100% of compensation (Self-employment income for Sole proprietors and partners) up to a specified maximum dollar amount to their Traditional IRA. Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer's income, tax-filing status, and coverage by an employer-sponsored retirement plan.
Trailer Fee A fee that a mutual fund manager pays to a salesperson who sells the fund to investors.
Trailing EPS The sum of a company's earnings per share for the previous four quarters.
Trailing Stop A stop-loss order that is set at a percentage level below (for a long position) the market price. The price is adjusted as the price fluctuates.
Trailing Twelve Months - TTM The timeframe of the past twelve months (the past year) used for reporting financial figures.
Tranches Related securities that are offered at the same time, but have different risks, rewards, and/or maturities.
Transaction The process of carrying out an order to buy or sell a security. This agreement between two parties requires the delivery of an asset or security by the seller and the acceptance and payment by the buyer
Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it).
Transaction Exposure In international trade, this is the potential risk that currency exchange rates will change after financial obligations are entered into.
Transaction Risk The exchange rate risk associated with the time delay between entering into a contract and settling it.
Transfer A tax-free, non-reportable movement of assets between retirement plans.
Transfer Agent An agent used by a corporation to maintain records of stock or bond owners, cancel and issue certificates, as well as deal with any associated problems (i.e. lost or stolen certificates).
Transfer Price A price at which divisions of a company transact with each other. Transactions may include supplies or labor that are traded between departments.
Translation Exposure The risk that a company's equity, assets, or income will change in value as a result of exchange rate changes. Also known as accounting exposure.
Translation Risk The exchange rate risk associated with companies that deal in foreign currencies or list foreign assets upon their balance sheets.
Transportation Expenses A business expense incurred by an employee or self-employed taxpayer while away from home in a travel status.
Traunch One of many influxes of cash that is part of a single round of investment.
Travel Expenses Business expenses incurred while an individual is away from home. These include meals, lodging, and transportation expenses.
Treasury Bill - T-Bill A U.S. government debt security with a maturity that is less than one year. Treasury bills are issued through a competitive bidding process at a discount from par. This means they do not pay fixed interest payments like most bonds do.
Treasury Bond A marketable, fixed-interest U.S. Government debt security with a maturity over 10 years.
Treasury Inflation Protected Securities - TIPS A special type of Treasury note or bond that offers protection from inflation. As with other Treasuries, when you buy an inflation-indexed security you receive interest payments every six months and a payment of principal when the security matures. The difference is that the coupon payments and underlying principal are automatically increased to compensate for inflation by tracking the consumer price index (CPI).
Treasury Investment Growth Receipts - TIGRs Introduced by Merrill Lynch, TIGRs are stripped treasury securities offered at a significant discount to face value and backed by the U.S. Government.
Treasury Lock A customized derivative security used by investors to lock in the yield or price of a treasury security.
Treasury Note A marketable, fixed-interest rate U.S. Government debt security with a maturity between 1 and 10 years.
Treasury Offering The issuance of an additional class of security already existing in a firm's treasury.
Treasury Receipt A zero coupon bond, which has been issued by a brokerage firm that has been collateralized by treasury securities held for the investor by a custodian.
Treasury Stock Stock that is repurchased by the issuing company. These shares don't pay dividends, have no voting rights, and should not be included in shares outstanding calculations.
Treasury STRIPS An acronym for "Separate Trading of Registered Interest and Principal Securities," Treasury STRIPS are fixed-income securities sold at a significant discount to face value and offer no interest payments because they mature at par.
Trend The general direction of the price of an asset or market in general.
Trend Analysis A type of technical analysis used to determine or locate significant trends in a security.
Trendline A line on the price or value chart of a security depicting the general direction the security is headed. Here is an example of an upward trendline:
Treynor Ratio A measurement of the returns earned in excess of that which could have been earned on a riskless investment (per each unit of market risk assumed).
Triangle A technical analysis pattern created by drawing trendlines along a price range that gets narrower over time because of lower tops and higher bottoms. Variations of a triangle include 'ascending' and 'descending' triangles. Triangles are very similar to wedges and pennants.
Trickle Down Theory An economic theory stating that investing money in companies and giving them tax breaks is the best way to stimulate the economy.
Triggering Event A certain milestone or event that a participant in a qualified plan must experience in order to be eligible to receive a distribution from a qualified plan.
Trilateral Commission From the site at Trilateral.org:
TRIN Short for TRaders INdex. A technical analysis indicator calculated by taking the advances-to-declines spread and dividing that by the volume of advances to declines.
Triple Net - Net, Net, Net Lease A lease where the tenant is solely responsible for all of the costs relating to the asset being leased. Examples are any upgrades, utilities, etc.
Triple Witching (Hour) An event that occurs when the contracts for stock index futures, stock index options, and stock options all expire on the same day. Triple Witching Days happen four times a year: the third Friday of March, June, September, and December. This phenomenon is sometimes referred to as "Freaky Friday."
TRL In currencies, this is the abbreviation for the Turkish Lira.
Trough The stage of the business cycle that marks the end of a period of declining business activity throughout the economy and the transition to expansion.
Trust A fiduciary relationship in which one person, a trustee, holds title to property or assets for the benefit of another person, the beneficiary.
Trust Deed A formal document which outlines investment objectives and policies when a mutual fund is initially established.
Trust Preferred Securities - TruPS A security similar to debentures and preferreds that is generally longer term, has early redemption features, makes quarterly fixed interest payments, and matures at face value.
Trustee An individual who holds or manages assets for the benefit of another.
Trustor An individual or organization that gifts funds or assets to others by transferring fiduciary duty to a third party trustee that will maintain the assets for the benefit of the beneficiaries.
TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors.
TTD In currencies, this is the abbreviation for the Trinidad & Tobago Dollar.
Tuck-In Acquisition The acquisition of a company made for the sole purpose of merging it into a division of the acquirer. Sometimes referred to as "bolt-on acquisitions."
Turkey Slang for an investment that yields disappointing results.
Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal.
Turnkey Business A situation where the high level management of a firm is in charge of the planning and execution of all business strategy. The client, who buys a franchise or part of the business, only has to "turn the key" for the operation to start.
Turnover 1. In accounting, the number of times an asset is replaced during a financial period.
2. The number of shares traded for a period as a percentage of the total shares in a portfolio or of an exchange.