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.

Did you know?

Weighted average coupon

The weighted average of the gross interest rate of the mortgages underlying the pool as of the pool issue date, with the balance of each mortgage used as the weighting factor.


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