T-period holding-period return: The percentage return over the T-year period an investment lasts.

TABs: Tax anticipation bills (TABs) are special bills that the Treasury occa ...

Tactical Asset Allocation: Tactical Asset Allocation (TAA) is an asset allocation strategy that a ...

Tail: (a) The difference between the average price in Treasury auctions and ...

Take: (a) A dealer or customer who agrees to buy at another dealer's offered ...

Take a position: To buy or sell short; that is, to have some amount that is owned or ow ...

Take-or-pay contract: A contract that obligates the purchaser to take any product that is of ...

Take-out: A cash surplus generated by the sale of one block of securities and th ...

Take-up fee: A fee paid to an underwriter in connection with an underwritten rights ...

Takeover: General term referring to the transfer of control of a firm from one g ...

Taking a view: A London expression for forming an opinion as to where market prices a ...

Taking delivery: Refers to the buyer's actually assuming possession from the seller of ...

Tandem programs: Under Ginnie Mae, mortgage funds provided at below-market rates to res ...

Tangible asset: An asset whose value depends on particular physical properties. These ...

TANs: TANs (tax anticipation notes) are issued by states or municipalities t ...

Target cash balance: Optimal amount of cash for a firm to hold, considering the trade-off b ...

Target firm: A firm that is the object of a takeover by another firm.

Target payout ratio: A firm's long-run dividend-to-earnings ratio. The firm's policy is to ...

Target surplus (or Tied Surplus): The capital that must remain in a life company in order to support the ...

Target zone arrangement: A monetary system under which countries pledge to maintain their excha ...



Targeted repurchase: The firm buys back its own stock from a potential bidder, usually at a ...

Tax books: Set of books kept by a firm's management for the IRS that follows IRS ...

Tax Breaks: Tax Breaks or "incentives" are advocated by the high tech industry - e ...

Tax clawback agreement: An agreement to contribute as equity to a project the value of all pre ...

Tax deferral option: The feature of the U.S. Internal Revenue Code that the capital gains t ...

Tax differential view ( of dividend policy): The view that shareholders prefer capital gains over dividends, and he ...

Tax free acquisition: A merger or consolidation in which (a) the acquirer's tax basis in eac ...

Tax haven: A nation with a moderate level of taxation and/or liberal tax incentiv ...

Tax Reform Act of 1986: A 1986 law involving a major overhaul of the U.S. tax code.

Tax shield: The reduction in income taxes or corporation taxes that results from t ...

Tax swap: Swapping two similar bonds to receive a tax benefit.

Tax-deferred retirement plans: Employer-sponsored and other plans that allow contributions and earnin ...

Tax-exempt sector: The municipal bond market where state and local governments raise fund ...

Tax-timing option: The option to sell an asset and claim a loss for tax purposes or not t ...

Taxable acquisition: A merger or consolidation that is not a tax-fee acquisition. The selli ...

Taxable income: Gross income less a set of deductions such as allowances, deeds of cov ...

Taxable transaction: Any transaction that is not tax-free to the parties involved, such as ...

TBA (to be announced): A contract for the purchase or sale of a MBS to be delivered at an agr ...

Technical analysis: Security analysis that seeks to detect and interpret patterns in past ...

Technical analysts: Also called chartists or technicians, analysts who use mechanical rule ...



Technical condition of a market: Demand and supply factors affecting price, in particular the net posit ...

Technical descriptors: Variables that are used to describe the market on a technical basis.

Technical insolvency: Default on a legal obligation of the firm. For example, technical inso ...

TED spread: Difference between U.S. Treasury bill rate and eurodollar rate; used b ...

Ted Spread: The difference between the price of the three-month U.S. Treasury bill ...

Telecom: Telecommunications: 1. Communication at a distance (as by a ...

Temporal method: Under this currency translation method, the choice of exchange rate de ...

Tender: To offer for delivery against futures.

Tender offer: Usually means that one firm or person is making an offer directly to t ...

Tender offer premium: The premium offered above the current market price in a tender offer.

Tenor: Maturity of a loan.

Term bonds: Often referred to as bullet-maturity bonds or simply bullet bonds, bon ...

Term Fed Funds: Federal funds sold for a period of time longer than overnight.

Term insurance: Provides a death benefit only, no build-up of cash value.

Term life insurance: A contract that provides a death benefit but no cash build-up or inves ...

Term loan: A bank loan, typically with a floating interest rate, for a specified ...

Term premiums: Excess of the yields to maturity on long-term bonds over those of shor ...

Term repo: A repurchase agreement with a term of more than one day.

Term structure of interest rates: The relationship between interest rates and their maturities.

Term to maturity: The term to maturity of a bond, commonly referred to as maturity or te ...



Term trust: A closed-end fund that has a fixed termination or maturity date.

Terminal Elevator: An elevator located at a point of greatest accumulation in the movemen ...

Terminal Market: Usually synonymous with commodity exchange or futures market, specific ...

Terminal value: The value at maturity.

Terms of sale: Conditions on which a firm proposes to sell its goods services for cas ...

Terms of trade: The weighted average of a nation's export prices relative to its impor ...

Terms Sheet: This is a document outlining the investment terms of a particular inve ...

THB: Baht from Thailand.

The 800 pound gorilla: Slang for the most important party to a transaction/or in a group

The Commodity Futures Trading Commission (CFTC): The Commodity Futures Trading Commission is the federal agency created ...

The Securities Industry Protection Corporation: Commonly named the SIPC. Provides up to $500,000 insurance protection ...

Theoretical futures price: Also called the fair price, the equilibrium futures price.

Theoretical spot rate curve: A curve derived from theoretical considerations as applied to the yiel ...

Theta: The derivative of the option price equation with respect to the remain ...

Thin market: A market in which trading volume is low and in which consequently the ...

Thinly traded: Infrequently traded.

Third market: Exchange-listed securities trading in the OTC market.

Three-phase DDM: A version of the dividend discount model which applies a different exp ...

Threshold for refinancing: The point when the WAC of an MBS is at a level to induce homeowners to ...

Thrift institutions (thrifts): Savings and loan associations, mutual savings banks, and credit unions ...

Throughput agreement: An agreement to put a specified amount of product per period through a ...

Tick: Refers to the minimum change in price a security can have, either up o ...

Tick indicator: A market indicator based on the number of stocks whose last trade was ...

Tick-test rules: SEC-imposed restrictions on when a short sale may be executed, intende ...

Tight market: A tight market, as opposed to a thin market, is one in which volume is ...

Tight money: When a restricted money supply makes credit difficult to secure. The a ...

Tilted portfolio: An indexing strategy that is linked to active management through the e ...

Time deposit: Interest-bearing deposit at a savings institution that has a specific ...

Time draft: Demand for payment at a stated future date.

Time premium: Also called time value, the amount by which the option price exceeds i ...

Time to maturity: The time remaining until a financial contract expires. Also called tim ...

Time until expiration: The time remaining until a financial contract expires. Also called tim ...

Time value of an option: The portion of an option's premium that is based on the amount of time ...

Time value of money: The idea that a dollar today is worth more than a dollar in the future ...

Times-interest-earned ratio: Earnings before interest and tax, divided by interest payments.

Timing option: For a Treasury Bond or note futures contract, the seller's choice of w ...

TJR: Tajik Rouble from Tajikistan.

TMM: Turkmenistani Manat from Turkmenistan.

TMWX (Wilshire 5000 Total Market Index): The TMWX measures the performance of all U.S. headquartered equity sec ...

TND: Tunisian Dinar from Tunisia.

To-Arrive Contract: A transaction providing for subsequent delivery within a stipulated ti ...

Tobins q: Tobins q-ratio is the market value of a firm’s securities to the repla ...

Today's High: The intraday highest trading price.

Today's Low: The intraday lowest trading price.

Tolling agreement: An agreement to put a specified amount of raw material per period thro ...

Tom next: In the interbank market in Eurodollar deposits and the foreign exchang ...

Tombstone: Advertisement listing the underwriters to a security issue.

TOP: Pa'anga from Tonga.

Top-down equity management style: A management style that begins with an assessment of the overall econo ...

Total asset turnover: The ratio of net sales to total assets. Thus, the total asset ...

Total debt to equity ratio: A capitalization ratio comparing current liabilities plus long-term de ...

Total dollar return: The dollar return on a nondollar investment, which includes the sum of ...

Total return: In performance measurement, the actual rate of return realized over so ...

Total return swap: A total return swap is an exchange of a return on a debt security for ...

Total revenue: Total sales and other revenue for the period shown. Also known as turn ...

Totalitarianism: Domination by a single, like-minded governing elite of all (or virtual ...

TPE: Timorian Escudo from East Timor.

Tracking error: In an indexing strategy, the difference between the performance of the ...

Trade: A verbal (or electronic) transaction involving one party buying a secu ...

Trade acceptance: Written demand that has been accepted by an industrial company to pay ...

Trade credit: Credit granted by a firm to another firm for the purchase of goods or ...

Trade date: In an interest rate swap, the date that the counterparties commit to t ...

Trade debt: Accounts payable.

Trade draft: A draft addressed to a commercial enterprise.

Trade house: A firm which deals in actual commodities.

Trade on top of: Trade at a narrow or no spread in basis points relative to some other ...

Traders: Persons who take positions in securities and their derivatives with th ...

Trading costs: Costs of buying and selling marketable securities and borrowing. Tradi ...

Trading Halt: The temporary suspension of trading in a quoted security, usually for ...

Trading paper: CDs purchased by accounts that are likely to resell them. The term is ...

Trading posts: The posts on the floor of a stock exchange where the specialists stand ...

Trading range: The difference between the high and low prices traded during a period ...

Traditional view (of dividend policy): An argument that "within reason," investors prefer large dividends to ...

Tranche: One of several related securities offered at the same time. Tranches f ...

Transaction: The entry or liquidation of a trade.

Transaction demand (for money): The need to accommodate a firm's expected cash transactions.

Transaction exposure: Risk to a firm with known future cash flows in a foreign currency that ...

Transaction loan: A loan extended by a bank for a specific purpose. In contrast, lines o ...

Transactions costs: The transactions costs are the expenses to the execution of a trade. I ...

Transactions motive: A desire to hold cash for the purpose of conducting cash based transac ...

Transfer agent: Individual or institution appointed by a company to look after the tra ...

Transfer price: The price at which one unit of a firm sells goods or services to anoth ...

Transfer Trades: Entries made upon the books of futures commission merchants for the pu ...

Transferable Option: A contract which permits a position in the option market to be offset ...

Transferable put right: An option issued by the firm to its shareholders to sell the firm one ...

Transition phase: A phase of development in which the company's earnings begin to mature ...

Translation exposure: Risk of adverse effects on a firm's financial statements that may aris ...

Transmogrifying: Conversion of nonexempt assets to exempt assets.

Treasurer: The corporate officer responsible for designing and implementing many ...

Treasurer's check: A check issued by a bank to make a payment. Treasurer's checks outstan ...

Treasury Bill: A short-term debt instrument issued by the government to finance its b ...

Treasury Bills: Treasury Bills refers to very short term debt instruments issued by th ...

Treasury Bond: A long-term debt instrument issued by the government to finance its bu ...

Treasury sector: Securities issued by the U.S. government. Includes Treasury bills, not ...

Treasury securities: Securities issued by the U.S. Department of the Treasury.

Treasury stock: Common stock that has been repurchased by the company and held in the ...

Trend: The general direction of the market, stock or other security.

Trendline: In charting, a line drawn across the bottom or top of a price chart in ...

Treynor Index: Treynor's T is a measure of the excess return per unit of risk, where ...

Triangular arbitrage: Striking offsetting deals among three markets simultaneously to obtain ...

Triple Witching Hour: A term given to the time when stock index futures, stock index options ...

TRL: Turkish Lira from Turkey.

Trough: The transition point between economic recession and recovery.

True interest cost: For a security such as commercial paper that is sold on a discount bas ...

True lease: A contract that qualifies as a valid lease agreement under the Interna ...

Trust deed: Agreement between trustee and borrower setting out terms of bond.

Trust receipt: Receipt for goods that are to be held in trust for the lender.

Trustee: A person totally independent of the settlor who has the fiduciary resp ...

TSE300: An index for shares trading on the Toronto Stock Exchange, i.e. the TS ...

TSR: Total Shareholder Return (TSR) represents the change in capital value ...

TSX Index: This is the re-named index tracking the top 60 Toronto Stock Exchange ...

TSX-V: The TSX Venture Exchange, formerly known as the CDNX which was created ...

TT&L account: Treasury tax and loan account at a bank.

TTD: Trinidad and Tobago Dollar from Trinidad and Tobago.

Turnaround: Securities bought and sold for settlement on the same day. Also, when ...

Turnaround time: Time available or needed to effect a turnaround.

Turnkey construction contract: A type of construction contract under which the construction firm is o ...

Turnover: In managerial finance it is the number of times a given asset, such as ...

TWD: Taiwan Dollar from Taiwan, Province of China.

Two-factor model: Black's zero-beta version of the capital asset pricing model.

Two-fund separation theorem: The theoretical result that all investors will hold a combination of t ...

Two-sided market: A market in which both bid and asked prices, good for the standard uni ...

Two-state option pricing model: An option pricing model in which the underlying asset can take on only ...

Two-tier tax system: A method of taxation in which the income going to shareholders is taxe ...

Type: The classification of an option contract as either a put or a call.

TZS: Tanzanian Shilling from Tanzania.

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A short-lived (typically less than 90 days) call option for purchasing additional stock in a firm, issued by the firm to all its shareholders on a pro rata basis.


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