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Financial Glossary
T

T
Fifth letter of a Nasdaq stock symbol indicating that the stock has warrants or rights.
TAA
See: Tactical asset allocation
TABs
See: Tax anticipation bill
TANs
See: Tax anticipation notes
TBA
See: To be announced
TC
The two-character ISO 3166 country code for TURKS AND CAICOS ISLANDS.
TD
The two-character ISO 3166 country code for CHAD.
TF
The two-character ISO 3166 country code for FRENCH SOUTHERN TERRITORIES.
TG
The two-character ISO 3166 country code for TOGO.
TH
The two-character ISO 3166 country code for THAILAND.
THB
The ISO 4217 currency code for the Thai Baht.
TJ
The two-character ISO 3166 country code for TAJIKISTAN.
TJR
The ISO 4217 currency code for the Tajikistan Rouble.
TK
The two-character ISO 3166 country code for TOKELAU.
TM
The two-character ISO 3166 country code for TURKMENISTAN.
TMM
The ISO 4217 currency code for the Turkmenistan Manet.
TN
The two-character ISO 3166 country code for TUNISIA.
TND
The ISO 4217 currency code for the Tunisian Dinar.
TO
The two-character ISO 3166 country code for TONGA.
TOP
The ISO 4217 currency code for the Tonga Pa'anga.
TP
The two-character ISO 3166 country code for EAST TIMOR.
TR
The two-character ISO 3166 country code for TURKEY.
TRL
The ISO 4217 currency code for the Turkish Lira.
TT
The two-character ISO 3166 country code for TRINIDAD AND TOBAGO.
TTD
The ISO 4217 currency code for the Trinidad and Tobago Dollar.
TV
The two-character ISO 3166 country code for TUVALU.
TW
The two-character ISO 3166 country code for TAIWAN, PROVINCE OF CHINA.
TWD
The ISO 4217 currency code for the Taiwan Dollar.
TZ
The two-character ISO 3166 country code for TANZANIA, UNITED REPUBLIC OF.
TZS
The ISO 4217 currency code for the Tanzania Shilling.
T-period holding-period return
The percentage return over the T-year period an investment is held.
TAC bonds
See: Targeted amortization class bond.
Tactical Asset Allocation (TAA)
Portfolio strategy that allows active departures from the normal asset mix according to specified objective measures of value. Often called active management. It involves forecasting asset returns, volatilities, and correlations. The forecasted variables may be functions of fundamental variables, economic variables, or even technical variables.
Tail
(1) The difference between the average price in Treasury auctions and the stopout price. (2) A future money market instrument (one available some period hence) created by buying an existing instrument and financing the initial portion of its life with a term repo. (3) The extreme ends under a probability curve. (4) The odd amount in an MBS pool.
Tailgating
Purchase of a security by a broker after the broker places an order for the same security for a customer. The broker hopes to profit either because of information which the customer has or because the customer's purchase is of sufficient size to affect security prices. This is an unethical practice.
Taiwan Stock Exchange
Exchange of the Republic of China in Taipei.
Take
(1) To agree to buy. A dealer or customer who agrees to buy at another dealer's offered price is said to take the offer. (2) Euro bankers speak of taking deposits rather than buying money.
Take a bath
To sustain a loss on either a speculation or an investment.
"Take it down"
Reduce the offering price or hit others' bids to such an extent as to lower the inside market.
Take a flier
To speculate on highly risky securities.
"Take me along"
"Allow me to participate in the side of a particular trade.
Take off
A sharp increase in the price of a stock, or a positive movement of the market as a whole.
Take the offer
Buy stock by accepting a floor broker's (listed) or dealer's (OTC) offer at an agreed-upon volume. Antithesis of hit the bid.
Take-out
A cash surplus generated by the sale of one block of securities and the purchase of another, e.g., selling a block of bonds at 99 and buying another block at 95. Also, a bid made to a seller of a security that is designed (and generally agreed) to take the seller out of the market.
Take-or-pay contract
An agreement that obligates the purchaser to take any product that is offered (and pay the cash purchase price) or pay a specified amount if the product is not taken.
Take a position
To buy or sell short; that is to own or to owe some amount on an asset or derivative security.
Take a powder
Temporarily cancel an order or indication in a stock, while unrepresented interest still exists. See: Back on the shelf, sidelines.
Take a swing
Execute a trade at a price that the trader feels is higher or more risky than would normally be acceptable, in order to gain market share in the institutional arena.
Takedown
The share of securities of each participating investment banker in a new or a secondary offering, or the price at which the securities are distributed to the different members of an underwriting group.
Takeover
General term referring to transfer of control of a firm from one group of shareholders to another group of shareholders. Change in the controlling interest of a corporation, either through a friendly acquisition or an unfriendly, hostile, bid. A hostile takeover (with the aim of replacing current existing management) is usually attempted through a public tender offer.
Takeover target
A company that is the object of a takeover attempt, friendly or hostile.
Take-up fee
A fee paid to an underwriter in connection with an underwritten rights offering or an underwritten forced conversion. Represents compensation for each share of common stock the underwriter obtains and must resell upon the exercise of rights or conversion of bonds.
Takes a call
Requires a phone call to an account in order for a trade to be completed. See: Show me.
Takes price
Requiring some price movement or concession on behalf of the initiating party before a trade can be consummated. See: Price give.
Taking delivery
When the buyer actually assumes possession from a seller of assets agreed upon in a forward contract or a futures contract.
Taking a view
A London expression; means forming an opinion as to where market prices are headed and acting on it.
Tandem programs
Ginnie Mae mortgage funds provided at below-market rates to residential MBS buyers with FHA Section 203 and 235 loans and to developers of multifamily projects with Section 236 loans initially and later with Section 221(d)(4) loans.
Tangible asset
An asset whose value depends on particular physical properties. These include reproducible assets such as buildings or machinery and non-reproducible assets such as land, a mine, or a work of art. Also called real assets. Converse of: Intangible asset
Tangible net worth
Total assets minus intangible assets, which include patents and copyrights, and total liabilities.
Tangibility
Characteristic that an assets can be used as collateral to secure debt.
Tape
(1) Service that reports prices and sizes of transactions on major exchanges-ticker tape. (2) Dow Jones and other news wires. See: Consolidated tape.
Tape is late
When the trading volume is so heavy that trades appear on the tape more than a minute behind the timer they actually take place.
Tariff
A tax on imports or exports.
Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the opportunity costs of holding too much cash and the trading costs of holding too little cash.
Target company
Often used in risk arbitrage. Firm chosen as an attractive takeover candidate by a potential acquirer. The acquirer may buy up to 5% of the target's stock without public disclosure, but it must report all transactions and supply other information to the SEC, the exchange the target company is listed on, and the target company itself once the 5% threshold is hit. See: Raider.
Target firm
A firm that is the object of a takeover by another firm.
Target investment mix
The percentage mix of stocks, bonds, and short-term reserves that an investor considers appropriate based on his/her personal objectives, time horizon, risk tolerance, and financial resources.
Target Leverage Ratio
The ratio of the market value of debt to the total market value of the firm that management seeks to maintain.
Target payout ratio
A firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a certain percentage of earnings, but it pays a stated dollar dividend and adjusts it to the target as base line increases in earnings occur.
Target price
In the context of takeovers, the price at which an acquirer aims to buy a target firm.

In the context of options, the price of the underlying security at which an option will become in the money.

In the context of stocks, the price that an investor hopes a stock will reach in a certain time period.

Target zone arrangement
A monetary system under which countries pledge to maintain their exchange rates within a specific margin around agreed-upon, fixed central exchange rates.
Target zones
Implicit boundaries on exchange rates established by central banks.
Targeted registered offerings
Securities issues sold to "targeted" foreign financial institutions according to U.S. Securities and Exchange Commission guidelines. These foreign institutions then maintain a secondary market in the foreign market.
Targeted repurchase
Buying back of a firm's stock from a potential acquirer, usually at a substantial premium, to forestall a takeover attempt. Related: Greenmail.
Targeted Amortization Class (TAC) bonds
Bonds offered as a tranche class of some CMOs, according to a sinking fund schedule. They differ from PAC bonds whose amortization is guaranteed as long as prepayments on the underlying mortgages do not exceed certain limits. A TAC's schedule is met at only one prepayment rate.
Tax anticipation bills (Tabs)
Special bills that the Treasury occasionally issues that mature on corporate quarterly income tax dates and can be used at face value by corporations to pay their tax liabilities.
Tax Anticipation Notes (Tans)
Notes issued by states or municipalities to finance current operations in anticipation of future tax receipts.
Tax arbitrage
Trading that takes advantage of a difference in tax rates or tax systems as the basis for profit.
Tax audit
Audit by the IRS or other tax-collecting agency to determine whether a taxpayer has paid the correct amount of tax.
Tax avoidance
Minimizing tax burden through legal means such as tax-free municipal bonds, tax shelters, IRA accounts, and trusts. Compare with tax evasion.
Tax base
The assessed value of the taxable property, assets, and income within a specific geographic area.
Tax basis
In the context of finance, the original cost of an asset less depreciation that is used to determine gains or losses for tax purposes.

In the context of investments, the price of a stock or bond plus the broker's commission.

Tax books
Records kept by a firm's management that follow IRS rules. The books follow Financial Accounting Standards Board rules.
Tax bracket
The percentage of tax obligation for a particular taxable income.
Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously realized project-related tax benefits not already clawed back. Exercised to the extent required to cover any cash deficiency of the project.
Tax clientele
Categories of investors who have specific preferences for debt or equity because of differences in their personal tax rates.
Tax credit
A direct dollar-for-dollar reduction in tax allowed for expenses such as child care and R&D for building low-income housing. Compare tax deduction.
Tax-deductible
The effect of creating a tax deduction, such as charitable contributions and mortgage interest.
Tax deduction
An expense that a taxpayer is allowed to deduct from taxable income.
Tax-deferred income
Dividends, interest, and unrealized capital gains on investments in an account such as a qualified retirement plan, where income is not subject to taxation until a withdrawal is made.
Tax deferral option
Allowing the capital gains tax on an asset to be payable only when the gain is realized by selling the asset.
Tax-deferred retirement plans
Employer-sponsored and other plans that allow contributions and earnings to be made and accumulate tax-free until they are paid out as benefits.
Tax differential view (of dividend policy)
The view that shareholders prefer capital gains over dividends, and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends.
Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
Legislation to increase tax revenue by eliminating various taxation loopholes and instituting tougher enforcement procedures in collecting taxes.
Tax-equivalent yield
The pre-tax yield required from a taxable bond in order to equal the tax-free yield of a municipal bond.
Tax evasion
Illegal by reducing tax burden by underreporting income, overstating deductions, or using illegal tax shelters.
Tax-exempt bond
A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax.
Tax-exempt income
Dividends and interest not subject to federal and, in some cases, state and local income taxes.
Tax-exempt income fund
A mutual fund that seeks income that is exempt from federal and, in some cases, state and local income taxes.
Tax-exempt money market fund
A money market fund that invests in short-term tax-exempt municipal securities.
Tax-exempt sector
The municipal bond market where state and local governments raise funds. Bonds issued in this sector are exempt from federal income taxes.
Tax-exempt security
An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town, or any political district.
Tax free acquisition
A merger or consolidation in which (1) the acquirer's tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and (2) each seller who receives only stock does not have to pay any tax on the gain realized until the shares are sold.
Tax haven
A nation with a moderate level of taxation and/or liberal tax incentives for undertaking specific activities such as exporting or investing.
Tax haven affiliate
A wholly owned entity in a low-tax jurisdiction that is used to channel funds to and from a multinational's foreign operations. The tax benefits of tax haven affiliates were largely removed in the US by the Tax Reform Act of 1986.
Tax holiday
A reduced tax rate that a government provides as an inducement to foreign direct investment.
Tax liability
The amount in taxes a taxpayer to the government.
Tax lien
The right of the government to enforce a claim against the property of a person owing taxes.
Tax and loan account
An account at a private bank, held in the name of the district Federal Reserve Bank, which holds operating cash for the business of the US Treasury.
Tax loss carryback, carryforward
A tax benefit that allows business losses to be used to reduce tax liability in previous and or following years.
Tax-neutrality
Characteristic that taxes do not interfere with the natural flow of capital toward its most productive use.
Tax planning
Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer.
Tax preference item
Items that must be included when calculating the alternative minimum tax.
Tax preparation services
Firms that prepare tax returns for a fee.
Tax rate
The percentage of tax paid for different levels of income.
Tax Reduction Strategy
A source of competitive advantage that depends on differences in the tax rates imposed in different locations.
Tax Reform Act of 1976
Legislation aimed at tightening provisions relating to taxation, including changes in the capital gains tax laws.
Tax Reform Act of 1984
Legislation enacted as part of the Deficit Reduction Act of 1984 to reduce the federal budget deficit. Among its provisions are a decrease in the minimum holding period for assets to qualify for long-term capital gains treatment from one year to six months.
Tax Reform Act of 1986
A 1986 law involving a major overhaul of the US tax code.
Tax Reform Act of 1993
See: Revenue Reconciliation Act of 1993
Tax refund
Money back from the government when too much tax has been paid or withheld from a salary.
Tax schedules
Tax forms used to report itemized deductions, dividend and interest income, profit or loss from a business, capital gains and losses, supplemental income and loss, and self-employment tax.
Tax selling
Selling of securities to realize losses that will offset capital gains and reduce tax liability. See: Wash sale.
Tax shelter
Legal methods taxpayers can use to reduce tax liabilities. An example is the use of depreciation of assets.
Tax-sheltered annuity
A type of retirement plan under Section 403(b) of the Internal Revenue Code that permits employees of public educational organizations or tax-exempt organizations to make before-tax contributions via a salary reduction agreement to a tax-sheltered retirement plan. Employers are also allowed to make direct contributions on behalf of employees.
Tax shield
The reduction in income taxes that results from taking an allowable deduction from taxable income.
Tax software
Computer software designed to assist taxpayers in filling out tax returns and minimizing tax liability.
Tax status election
The decision of the status under which to file a tax return. For example, a corporation may file as a C corporation or an S corporation.
Tax straddle
Technique used in futures and options trading to create tax benefits. For example, an investor with a capital gain takes a position creating an artificial offsetting loss in the current tax year and postponing a gain from the position until the next tax year.
Tax swap
Swapping two similar bonds to receive a tax benefit.
Tax-timing option
The option to sell an asset and claim a loss for tax purposes or not sell the asset and defer the capital gains tax.
Tax umbrella
Tax loss carryforwards from previous business losses that form a tax shelter for profits earned in current and future years.
Taxpayer Relief Act of 1997
Legislation forming part of a larger act designed to balance the federal budget. Some of the legislation's provisions included tax credits for taxpayers supporting children, an increase in the amount that could be excluded from estate taxes, and a lower capital gains tax rate.
Taxable acquisition
A merger or consolidation that is not a tax-fee acquisition. The selling shareholders are treated as having sold their shares.
Taxable equivalent yield
The return from a higher-paying but taxable investment that would equal the return from a tax-free investment. This depends on the investor's tax bracket.
Taxable estate
That portion of a deceased person's estate that is subject to transfer tax.
Taxable event
An event or transaction that has a tax consequence, such as the sale of stock holding that is subject to capital gains taxes.
Taxable income
Gross income less a variety of deductions.
Taxable municipal bond
Taxed private-purpose bonds issued by the state or local government to finance prohibited projects such as sports stadiums.
Taxable transaction
Any transaction that is not tax-free to the parties involved, such as a taxable acquisition.
Taxable year
The 12-month period an individual uses to report income for income tax purposes. For most individuals, their tax year is the calendar year.
Tear sheet
A page from an S&P stock that provides information on thousands of stocks, often sent to prospective purchasers.
Teaser rate
A low initial interest rate on an adjustable-rate mortgage to entice borrowers, that is later eliminated and replaced by a market-level rate.
Technical analysis
Security analysis that seeks to detect and interpret patterns in past security prices.
Technical analysts
Also called chartists or technicians, analysts who use mechanical rules to detect changes in the supply of and demand for a stock, and to capitalize on the expected change.
Technical condition of a market
Demand and supply factors affecting price, in particular, the net position, either long or short, of the dealer community.
Technical descriptors
Variables that are used to describe the market in terms of patterns in historical data.
Technical forecasting
A forecasting method that uses historical prices and trends.
Technical Information
Information related to the momentum of a particular variable. In market analysis, technical information is information related to market dynamics and crowd behavior only.
Technical insolvency
Default on a legal obligation of the firm. Technical insolvency occurs when a firm doesn't pay a bill on time.
Technical rally
Short rise in securities or commodities futures prices in the face of a general declining trend. Such a rally may result because investors are bargain hunting or because analysts have noticed a particular support level at which securities usually bounce up. Antithesis of correction.
Technical sign
A short-term trend in the price movement of a security that analysts recognize as significant.
Technician
Related: Technical analysts
TED spread
Difference between US Treasury bill rate and Eurodollar rate; used by some traders as a measure of investor/trader anxiety or credit quality.
Teeny
1/16 or 0.0625 of one full point in price. Steenth.
Tel Aviv Stock Exchange
Israel's only stock exchange.
Telephone switching
Moving one's assets from one mutual fund or variable annuity to another by telephone.
Temporal method
A currency translation method under which the choice of exchange rate depends on the underlying method of valuation. Assets and liabilities valued at historical cost (market cost) are translated at the historical (current market) rate.
Temporary Assets
That portion of a firm's current assets that fluctuates in response to seasonal or anticipated short-term.
Temporary Financing
The sum of negotiated current liabilities and temporary spontaneous current liabilities.
Temporary investment
A short-term investment, such as a money market fund, Treasury bills, or short-term CD, which is usually held a year or less.
Ten largest holdings
The percentage of a portfolio's total net assets or equity holdings in its ten largest securities positions. As this percentage rises, a portfolio's returns are likely to be more volatile because they are more dependent on the fortunes of fewer companies.
10% guideline
The standard analysts' principle that funded debt over 10% of the assessed valuation of taxable property for a municipality is excessive.
10-K
Annual report required by the SEC each year. Provides a comprehensive overview of a company's state of business. Must be filed within 90 days after fiscal year-end. A 10-Q report is filed quarterly.
10-Q
Quarterly report required by the SEC each quarter. Provides a comprehensive overview of a company's state of business.
1040 form
The standard individual tax return form of the IRS.
1099
A statement sent to the IRS and taxpayers by the payers of dividends and interest and by issuers of taxable original issue discount securities.
Tenant
A partial owner of a security, or the holder of some property. See: Lessee.
Tenants in common
Account registration in which two or more individuals own a certain proportion of an account. Each tenant's proportion is distributable as part of the owners estate, so that if one of the account holders dies, that owner's heirs are entitled to that proportional share of the account.
Tenbagger
A stock that grows in value ten-fold.
Tender
To offer for delivery against futures.
Tender offer
General offer made publicly and directly to a firm's shareholders to buy their stock at a price well above the current market price.
Tender offer premium
The premium offered above the current market price in a tender offer.
Tenor
Maturity of a loan.
Term
The period of time during which a contract is in force.
Term bonds
Bonds whose principal is payable at maturity. Often referred to as bullet-maturity bonds or simply bullet bonds. Related: Serial bonds.
Term certificate
A certificate of deposit with a longer time to maturity.
Term Fed funds
Fed 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 investment component. The premium remains constant only for a specified term of years, and the policy is usually renewable at the end of each term.
Term loan
A bank loan, typically with a floating interest rate, for a specified amount that matures in between one and ten years, and requires a specified repayment schedule.
Term to maturity
The time remaining on a bond's life, or the date on which the debt will cease to exist and the borrower will have completely paid off the amount borrowed. See: Maturity.
Term premiums
Excess of the yields to maturity on long-term bonds over those of short-term bonds.
Term repo
A repurchase agreement with a term of more than one day.
Term structure of interest rates
Relationship between interest rates on bonds of different maturities, usually depicted in the form of a graph often called a yield curve. Harvey shows that inverted term structures (long rates below short rates) have preceded every recession over the past 30 years.
Term trust
A closed-end fund that has a fixed termination or maturity date.
Terminal value
The value of a bond at maturity, typically its par value, or the value of an asset (or an entire firm) on some specified future valuation date. Usually, a perpetuity formula is used. For example, suppose we forecast cash flows through year 10. We make an assumption that year 11 and beyond will be no growth (except for inflation). If the cash flow forecast for year 11 is 100, the firm's discount rate is 12%, and inflation is expected to be 2%, we use the formula V10 = CF11/(disc rate-inflation). Hence, the value is 100/(0.12 - 0.02) that is 1,000. This cash flow needs to be brought back to present value using the formula 1000/(1.12)10, which is 321.97. Note the importance of the inflation assumption.
Terms of sale
Conditions under which a firm proposes to sell its goods or services for cash or credit.
Terms of trade
The weighted average of a nation's export prices relative to its import prices.
Territorial tax system
A tax system that taxes domestic income but not foreign income. Territorial tax regimes are found in Hong Kong, France, Belgium, and the Netherlands.
Test
The event of a price movement that approaches a support level or a resistance level established earlier by the market. A test is passed if prices do not go below the support or resistance level, and the test is failed if prices go on to new lows or highs.
Testamentary trust
A trust created by a will, that is scheduled to occur after the maker's death.
Theoretical futures price
The equilibrium futures price. Also called the fair price.
Theoretical spot rate curve
A curve derived from theoretical considerations as applied to the yields of actually traded Treasury debt securities, because there are no zero-coupon Treasury debt issues with a maturity greater than one year. Like the yield curve, this is a graphic depiction of the term structure of interest rates.
Theoretical value
Applies to derivative products. Mathematically determined value of a derivative instrument as dictated by a pricing model such as the Black-Scholes model.
Theta
The ratio of the change in an option price to the decrease in time to expiration. Also called time decay.
Thin market
A market in which trading volume is low, and consequently bid and asked quotes are wide and the instrument traded is not very liquid. Very little stock to buy or sell. Illiquid.
Thinly traded
Infrequently traded.
Third market
Exchange-listed securities trading in the OTC market.
Thirty-day visible supply
The total volume in dollars of municipal bonds with maturities of 13 months or more that should reach the market within 30 days.
Thirty-day wash rule
IRS rule stating that losses on a sale of stock may not be used as tax shelter if equivalent stock is purchased 30 days or less before or after the sale of the stock.
Three-phase DDM
A version of the dividend discount model that applies a different expected dividend rate depending on a company's life-cycle phase: growth phase, transition phase, or maturity phase.
Three steps and a stumble rule
A rule predicting that stock and bond prices will fall following three increases in the discount rate by the Federal Reserve. This is a result of increased costs of borrowing for companies and the increased attractiveness of money market funds and CDs over stocks and bonds as a result of the higher interest rates.
Threshold for refinancing
The point when the weighted-average coupon of an MBS is at a level to induce homeowners to prepay the mortgage in order to refinance to a lower-rate mortgage, generally reached when the weighted-average coupon of the MBS is 2 percentage points or more above currently available mortgage rates.
Thrift institution
An organization formed as a depository for primarily consumer savings. Savings and loan associations and savings banks are thrift institutions.
Thrift plan
A defined contribution plan in which an employee contributes, usually on a before-tax basis, toward the ultimate benefits that will be provided. The employer usually agrees to match all or a portion of the employee's contributions.
Throughput agreement
An agreement to put a specified amount of product per period through a particular facility. An example is an agreement to ship a specified amount of crude oil per period through a particular pipeline.
Tick
Refers to the minimum change in price a security can have, either up or down. Related: Point.
Tick indicator
A market indicator based on the number of stocks whose last trade was an uptick or a downtick. Used as an indicator of market sentiment or psychology to try to predict the market's trend.
Tick-test rules
SEC-imposed restrictions on when a short sale may be executed, intended to prevent investors from destabilizing the price of a stock when the market price is falling. A short sale can be made only when either (1) the sale price of the particular stock is higher than the last trade price (referred to as an uptick trade) or (2) if there is no change in the last trade price of the particular stock, the previous trade price must be higher than the trade price that preceded it (referred to as a zero uptick).
Ticker symbol
An abbreviation assigned to a security for trading purposes.
Ticker tape
Computerized device that relays to investors around the world the stock symbol and the latest price and volume on securities as they are traded.
Ticket
An abbreviation of order ticket.
Tier 1 and Tier 2
Descriptions of the capital adequacy of banks. Tier 1 refers to core capital while Tier 2 refers to items such as undisclosed resources.
TIGER
Acronym for Treasury Investors Growth Receipt. US government-backed bonds without coupons, meaning that the bondholders do not receive the periodic interest payments. The principal of the bond and the individual coupons are sold separately.
Tight
In line with or extremely close to the inside market or last sale in a stock (+/- 1/8). On the money.
Tight market
A market in which volume is high, trading is active and highly competitive, and consequently spreads between bid and ask prices are narrow.
Tight money
When a restricted money supply makes credit difficult to secure. The antithesis of tight money is easy money.
Tiki
Tick of Dow Jones Industrial Average component issues.
Tilted portfolio
An indexing strategy that is linked to active management through the emphasis of a particular industry sector, selected performance factors such as earnings momentum, dividend yield, price-earnings ratio, or selected economic factors such as interest rates and inflation.
Time decay
Related: Theta
Time deposit
Interest-bearing deposit at a savings institution that has a specific maturity. Related: Certificate of deposit.
Time draft
Demand for payment at a stated future date.
Time horizon
The period, usually expressed in years, for which an investor expects to hold an investment.
Time to maturity
The time remaining until a financial contract expires. Also called time until expiration.
Time order
Order that becomes a market or limited price order or is canceled at a specific time.
Time premium
Also called time value, the amount by which an option price exceeds its intrinsic value. The value of an option beyond its current exercise value representing the optionholder's control until expiration, the risk of the underlying asset, and the riskless return.
Time-series analysis
Assessment of relationships between two or among more variables over periods of time.
Time series models
Systems that examine series of historical data; sometimes used as a means of technical forecasting, by examining moving averages.
Time spread strategy
Buying and selling puts and calls with the same exercise price but different expiration dates, and trying to profit from the different premiums of the options.
Time until expiration
The time remaining until a financial contract expires. Also called time to maturity.
Time value
Applies to derivative products. Portion of an option price that is in excess of the intrinsic value, due to the amount of volatility in the stock; sometime referred to as premium. Time value is positively related to the length of time remaining until expiration.
Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar received today can earn interest up until the time the future dollar is received.
Time value of an option
The portion of an option's premium that is based on the amount of time remaining until the expiration date of the option contract, and the idea that the underlying components that determine the value of the option may change during that time. Time value is generally equal to the difference between the premium and the intrinsic value. Related: In the money.
Times-interest-earned ratio
Earnings before interest and tax, divided by interest payments.
Time-weighted rate of return
Related: Geometric mean return
Timeliness
A source of competitive advantage that depends on being the first to enter a given market with a product or service.
Timing