T+1, T+2 and T+3, as well as other "T+" numbers, refers to the number of days it takes to settle a financial transaction. Funds settlement refers to the transfer of funds from buyer to seller ...

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T. Boone Pickens (1928-2019) was a well-known oil tycoon. His first initial stands for Thomas.Pickens was born in Oklahoma but moved to Amarillo, Texas, as a child.He attended Texas A&M for a year...

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The Taft-Hartley Act, officially known as the Labor-Management Relations Act, is a federal labor law that regulates the actions of labor unions.Ratified in 1947, the Taft-Hartley Act sought to reform ...

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Also called co-sale rights, tag-along rights allow minority shareholders to sell their stakes in a company if a majority shareholder wishes to sell its stake in a company. Let's say Company XYZ i...

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Tail risk is the risk that an investment will change by more than three standard deviations from its mean. Standard deviation is a measure of how much an investment's returns can vary from its av...

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Tailgating occurs when a broker buys or sells a security after doing the same for a client. Let's say John Doe is a broker for Jane Smith. Jane calls John and tells him she just saw a press relea...

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Tainted alpha is the portion of a security's or portfolio's return that is not attributable solely to the skill of the investor or portfolio manager. Alpha is the portion of a security's ...

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To "take a bath" means to take a large loss. John Doe buys Company XYZ shares at $10. Two weeks later, the stock tanks to $2 a share. John Doe has to sell the shares because he has to pay an ...

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Take home pay is the portion of one's salary left after all payroll taxes have been deducted. John Doe has a salary of $100,000. He is paid 26 times per year (every other Friday). The federal and...

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Take or pay is a contract that obligates one party to either take possession of certain goods or pay a certain amount. Let's say John Doe is a beet farmer in Scranton, Pennsylvania. He usually gr...

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A take-out lender is a lender whose loan replaces another loan. Let's say Company XYZ is a real estate development company. It owns a piece of land at a busy intersection and decides to build a h...

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A take-out loan is a loan that replaces another loan. Let's say Company XYZ is a real estate development company. It owns a piece of land at a busy intersection and decides to build a huge apartment ...

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The takedown is the price that an underwriter pays for a new issue.   When a company decides it wants to issue stock, bonds or other publicly traded securities, it hires an underwriter to mana...

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A takeover is the purchase of a company. A takeover is different from a merger, which occurs when the purchaser and the target both cease to exist and instead form a new, combined company.   L...

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A takeover target is a company that is a good candidate for purchase by an acquirer.Let's assume Company XYZ has developed an exciting new widget. Several companies may be interested in purchasing...

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A tangible asset is anything that has commercial or exchange value and has a physical form. Let’s assume XYZ Company intends to purchase an office building for $10 million. The building has a p...

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Tangible book value per share (TBVPS) equals a company's net tangible assets divided by its number of shares outstanding. A tangible asset is anything that has commercial or exchange value and has...

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Tangible common equity (TCE) is the common equity listed on the balance sheet minus preferred stock and intangible assets. The formula for tangible common equity is:Tangible Common Equity = Commo...

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The formula for tangible common equity ratio is: Tangible Common Equity Ratio = (Common Equity - Intangible Assets)/Tangible Assets Some analysts also subtract preferred stock from common equity...

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When trading volume is so high that the ticker quotes are lagging behind to keep up with reporting the trades, we say the tape is late. Let's say that trading volume on the NYSE quintuples one da...

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Tape shredding occurs when a broker splits a large buy or sell order into a lot of smaller buy or sell orders. Let's say Company XYZ is a huge pension fund with billions of dollars under manageme...

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Target date funds are mutual funds designed to target the date of an investor’s goal, such as retirement or college education funding. The strategy of the fund will focus on capital appreciation ...

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A target market is an intended audience for a marketing campaign, product or service. Let's assume Company XYZ manufactures orthopedic shoes. Clearly, the company's target market might be sen...

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News stories over the past few years have focused on tariffs and rumors of “escalated trade wars” between the United States and another country. But what is a tariff? Are they taxes on all importe...

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Tax accounting focuses on the preparation, analysis and presentation of tax returns and tax payments. For example, Company XYZ might use one accounting method for calculating depreciation when i...

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A tax advisor is a person who advises clients about tax laws and strategies. For example, a tax advisor might help a client structure his assets such that his estate taxes are lower. A tax advisor mi...

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Used primarily in the United Kingdom, a tax and price index measures the amount that a consumer’s income would have to increase to compensate for increases in inflation and taxes. Assume John D...

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A tax anticipation note (TAN) is a short-term note that a state or local government issues and expects to repay with imminent tax receipts. Let's assume Town XYZ wants to purchase a new building to r...

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Tax arbitrage is the act of profiting from differences in how income or capital gains are taxed. Tax shelters are often used to take advantage of tax arbitrage opportunities. For example, a person or...

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A tax attribute is a reduction that the IRS requires a taxpayer to make in a tax credit or tax loss when a lender cancels debt that the taxpayer owes. There are typically seven types of tax attributes...

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Tax avoidance is the legal act of minimizing one's taxes. It is not the same as tax evasion, which is illegal. Practically every taxpayer engages in tax avoidance at some point in order to minimize h...

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A tax base is the total amount of assets or revenue that a government can tax. Taxes can be based on any kind of asset or revenue stream. For example, to calculate the tax base for a sales tax, you m...

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A tax benefit is any tax advantage given by the IRS to a taxpayer that reduces his or her tax burden. It's also the name of an IRS rule requiring companies to pay taxes on income that was previous...

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A tax bracket is range of incomes for which a certain tax rate applies. The United States has a progressive tax system, which means that different portions of a person's income is taxed at increasing...

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A tax break is a tax deduction, tax credit or reduction in tax rate.For example, let's say John and his wife had a baby in 2011. When John files his tax return for the year 2011, he will qualify f...

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In a tax clawback agreement, a company or organization agrees to repay government benefits via higher taxes at a later date. Company XYZ agrees to take $40 million from the federal government to prev...

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A tax credit is permission to reduce the amount of income that is subject to tax. A tax credit is not the same as a tax deduction.   For example, the Internal Revenue Service’s child tax...

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A tax deduction reduces the amount of income that is subject to tax. A tax deduction is not the same as a tax credit.For example, let's assume that John paid $10,000 in mortgage interest last year...

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In the investment world, "tax deferred" refers to investments on which applicable taxes (typically income taxes and capital gains taxes) are paid at a future date instead of in the period in w...

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The tax differential view of dividend policy is the idea that capital gains are better than dividends because the tax rate on capital gains is lower than the tax rate on dividends. For example, let...

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Tax drag is the reduction in returns attributable to taxes.For example, let's assume that John owns 100 shares of Company XYZ stock. He bought the stock at $10 per share, for a total of $1,000. Th...

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Tax efficiency involves making investing choices that reduce one's tax bill.For example, let's assume that John owns 100 shares of Company XYZ stock, which he bought six months ago for $5 a sh...

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The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) became law on September 3, 1982. The TEFRA made it more difficult for individuals and corporations to reduce their tax liability. Represen...

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Tax evasion is the act of illegally avoiding tax liability. Tax evasion is a felony. Section 7201 of the Internal Revenue Code states, "Any person who willfully attempts in any manner to evade or def...

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Generally, tax exempt means free from federal income taxation.Tax exemptions can apply to a portion of an individual's income or to the nature of an organization. For example, let's say th...

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Tax expense is the amount of tax owed in a given period. It appears on the income statement.The formula for tax expense is: Tax Expense = Effective Tax Rate x Taxable Income For example, let'...

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Tax fairness is the concept of having an equitable tax system.Tax fairness is a subjective term with no single hard-and-fast definition. The U.S. federal tax system is a progressive tax system, me...

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Tax fraud is the willful and intentional act of lying on a tax return for the purpose of lowering one's tax liability.For example, let's say John owns a painting business. As an employer, he d...

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Tax free means not taxable.For example, many states and municipalities do not charge sales tax on food items. These items are tax free. For many investors, the interest earned from municipal bonds is ...

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Tax gain/loss harvesting is a strategy for reducing taxes. John Doe made two major investment transactions this year: 1. Sold 1,000 shares of Company XYZ at $25 a share (originally purchased five y...

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A tax haven is a country or jurisdiction known for generating little or no tax liability.Tax havens exist because countries are usually not obligated to provide customer information to foreign taxing ...

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A tax holiday is a day or period of time during which a government does not tax certain transactions.Sales tax holidays are especially common. Typically, they involve suspending the collection of sale...

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A tax home is a taypayer's primary residence or place of business (if the taxpayer is an organization).Let's assume John lives in Montana during the summer and Arizona during the winter. He sp...

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Tax incidence is a term that describes whether producers or consumers bear the burden of a new tax.For example, let's assume that Congress passes a bill that places a $0.10 per ounce tax on potato...

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The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) was signed into law on May 17, 2006. TIPRA was passed to achieve five primary goals: Prevent a scheduled increase in the numbe...

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Tax indexing is method for adjusting tax rates to account for inflation-related increases in income.For example, let's say that John makes $100,000 a year and is in the 28% federal income tax brac...

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Tax liability refers to the amount legally owed to a taxing authority as the result of a taxable event. A tax liability might also be called a "tax obligation." A tax authority -- such as a local,...

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A tax lien is a claim placed on a piece of real estate by a tax authority due to a taxpayer's failure to pay taxes.   When a taxpayer fails to pay either income taxes or property taxes, ...

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A tax lien certificate is written proof that a taxing authority has placed a lien on a piece of property for unpaid property taxes. Let's assume that John owns a house in the country and the annual p...

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A tax loss carryforward is a "negative profit" for tax purposes. It usually occurs when a company's expenses exceed revenues, making the company unprofitable.Tax loss carryfowards reduce f...

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Tax lot accounting is a method of record keeping that tracks the cost, purchase date, and sale date for every unit of every security in a portfolio.For example, let's assume that you purchase 50 s...

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Tax planning is the process of forecasting one's tax liability and formulating ways to reduce it.Tax planning entails creating portfolios or circumstances that are as tax efficient as possible. Th...

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A tax preference item is income that subjects a taxpayer to alternative minimum tax (AMT). These items are treated differently for regular tax and AMT purposes.According to U.S. tax code (26 USC secti...

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A tax rate is the percentage of income a person or company pays in taxes.The United States has a progressive tax system, which means that different portions of a person's income are taxed at diffe...

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Also called the Revenue Reconciliation Act of 1993, the Tax Reform Act of 1993 was a major revision to the United States tax system.The Tax Reform Act of 1993 had several components that received a lo...

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A taxpayer gets a tax refund when he or she has overpaid taxes to the government.A tax refund is the difference between taxes paid and taxes owed. Each year (or each quarter, in some cases) a taxpayer...

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A tax refund anticipation loan (TRAL) is a short-term loan from a third party. The loan is collateralized by the borrower's pending tax refund. For example, let's assume that John does his taxes on A...

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Tax relief is a tax deduction, tax credit, reduction in tax rate or forgiveness of a tax lien. For example, let's say John and his wife had a baby in 2011. When John filed his tax return for the ...

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A tax return is a set of forms that a taxpayer uses to calculate and report taxes owed to the Internal Revenue Service (IRS).April 15 is the annual deadline for filing a tax return, though some types ...

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A tax roll is a list of taxable property in a city, county, state or other taxing authority. For example, let's assume that the city of Investon has 1,500 residents. About 750 of those residents ...

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Tax season is from January 1 to April 15 of each year.Tax season is the busiest part of the year for tax accountants, because the filing deadline for individual taxpayers is April 15. It is also a bus...

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A tax service fee is paid by mortgage borrowers to mortgage lenders to ensure that a mortgaged property's property taxes are paid on time. For example, let's assume that John buys a house. He...

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A tax shelter is a means of minimizing one's tax liability. Tax shelters can be both legal and illegal.The most widely used tax shelter in the United States is the 401(k) employer sponsored plan. ...

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A tax shield is a deduction, credit or other method used to reduce the amount of taxes owed. For example, let's say John and his wife have a baby in 2011. When John files his tax return for the y...

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A tax swap is a strategy that involves selling one investment with capital losses and replacing it with a similar, but not identical, investment. Let's assume that John owns 1,000 shares of Mutua...

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A tax table shows the tax due for different income ranges. For example, according to the IRS 2011 tax table, if John makes a salary between $76,150 and $76,200 and is single, he owes $15,169 in taxes...

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A tax treaty is an agreement between two countries regarding how they tax each other's citizens. In the U.S., residents of foreign countries that have tax treaties with the U.S. are taxed at a re...

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A tax wedge is the difference between gross income and after-tax income. In economics, it refers to the broader financial effects of a tax on a sector of the market. Technically speaking, the tax wed...

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A tax year is the year for which a tax is calculated and paid. The United States has a January to December tax year for individual taxpayers. Let's say John files his tax return on April 15, 2012...

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Tax-advantaged means that some or all of an investor's income is sheltered from taxation, allowing a taxpayer to minimize his or her tax burden. One of the best examples of tax-advantaged investi...

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A tax-deferred annuity (TDA), commonly referred to as a tax-sheltered annuity (TSA) plan or a 403(b) retirement plan, is a retirement savings plan available to employees of certain public education or...

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A tax-deferred savings plan is an account that allows the account holder to postpone paying taxes on the investments in the account. A 401(k) plan is the most common example of a tax-deferred savings...

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A tax-efficient fund is a mutual fund or ETF that minimizes the fundholder's tax bill in some way. For example, let's say John is in a high tax bracket. He wants to invest, but he wants to av...

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Tax-exempt commercial paper is short-term debt for which the interest payments are tax-exempt at the federal, state or local level. Universities are some of the most common issuers of tax-exempt comm...

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Tax-exempt interest is interest income that is exempt from federal and/or state taxes.For example, let's assume that John Doe purchases a municipal bond. The bond pays 5% interest per year, or $50 for...

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Generally, tax-exempt securities are those whose interest, dividends or gains are free from federal income taxation. For example, let's assume that John purchases $1,000 of municipal bonds. The b...

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In Canada, a tax-free savings account (TFSA) is a federal program that allows Canadians to avoid paying taxes on interest earned in specific savings accounts.Canadians with valid Canadian Social Insur...

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A tax-free spinoff occurs when a company divests a portion of its business in a manner that qualifies as a tax-free transaction under Section 355 of the Internal Revenue Code and thus does not require...

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A tax-sheltered annuity (TSA), also referred to as a tax-deferred annuity (TDA) plan or a 403(b) retirement plan, is a retirement savings plan for employees of certain public education organizations, ...

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A taxable bond is a bond whose interest payments are taxable at the federal, state and/or local level. The purchaser of a taxable bond is, in effect, lending money to a company or other entity that w...

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Taxable equivalent yield (also called equivalent taxable interest rate) is the return that is required on a taxable investment to make it equal to the return on a tax-exempt investment. The taxable eq...

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A taxable estate is the portion of a person's net assets that are taxable upon his or her death. An estate tax is often levied on the assets that the deceased leaves to his or her heirs.  L...

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A taxable event is any occurrence that creates a tax liability. Many day-to-day financial activities are taxable events, but in the investing world the most common are the receipt of income, interest...

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A taxable gain is an increase in the value of an investment. It is the difference between the purchase price (known as the "cost basis") and the sale price of an asset.  The formula for ...

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At the beginning of every year, most individuals and families start collecting their annual pay statements and receipts in order to determine their taxable income. If you’ve ever done taxes on your ...

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Taxable preferred securities are typically preferred stocks whose dividends are not tax-exempt. Preferred securities (usually called "preferred stocks") have characteristics of both stocks an...

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A taxable spinoff occurs when a company divests a portion of its business in a manner that does not qualify as a tax-free transaction under Section 355 of the Internal Revenue Code. Under a taxable s...

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A taxable wage base is the maximum annual wage on which a taxpayer must pay taxes. For example, let's assume that John earns $150,000 a year as CFO of Company XYZ. The United States government ha...

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"Taxation without representation" is a phrase commonly thought to have been first made famous by Boston lawyer James Otis in 1765. It refers to the idea of imposing taxes on people who have no recours...

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Taxes are required payments from citizens to governments. The payments fund projects and expenditures that serve the public interest.  Most taxes are legislated, meaning that representatives ele...

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A taxpayer is a person or organization that must pay taxes to a federal, state, or local agency.  For example, let's assume that Jane is an employee of Company XYZ. She earns $150,000 per ye...

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The Taxpayer Advocate Service (TAS) is an organization within the Internal Revenue Service that is designed to help taxpayers resolve problems with the IRS.  The TAS was first formed in 1978. Ov...

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The Taxpayer Bill of Rights is a list of the protections available to all taxpayers when dealing with the Internal Revenue Service. In 1988, Congress passed the first Taxpayer Bill of Rights. Congres...

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Also called an Individual Taxpayer Identification Number (ITIN), a taxpayer identification number (TIN) is a nine-digit number that the IRS uses to identify individuals who do not have and are not req...

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The Taxpayer Relief Act was created in 1997 and signed by President Bill Clinton. It represented a major overhaul of the U.S. tax system and introduced dozens of new tax credits, benefits and brackets...

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A teaser is a document that advertises the potential future sale of a security. The teaser's job is to create demand for a security. Because it is not a prospectus, it does not usually have all t...

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A teaser loan is usually an adjustable-rate mortgage (ARM) with an artificially low initial interest rate. The interest rate on the ARM corresponds to a specific benchmark (often the prime rate, but ...

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A teaser rate is usually an artificially low initial interest rate on an adjustable-rate mortgage (ARM). The interest rate on the ARM corresponds to a specific benchmark (often the prime rate, but so...

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Technical analysis is a methodology that makes buy and sell decisions using market statistics. It primarily involves studying charts showing the trading history and statistics for whatever security is...

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A technical rally is a price increase brought on by traders reacting to signals from technical analysis.A technical rally occurs after a security has experienced a substantial price decline and begins...

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The TED spread was originally calculated as the difference between interest rates on 3-month T-bills and 3-month Eurodollar contracts with identical expiration months. The acronym is derived from the ...

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Tele Tax is an automated phone service offered by the IRS. Tele Tax allows callers to select from a phone menu of 151 tax topics. The topics contain pre-recorded information. The information is avail...

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Tenancy at will is a legal term describing an arrangement whereby a tenant occupies a piece of property with the permission of the property owner. Let's say John Doe is a bachelor trying to make ...

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Tenancy by entirety is property ownership in which all joint owners have equal portions of ownership that are immediately allocated to remaining owners if one owner dies. Also called joint tenant...

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Tenants in common (TIC) describes an ownership status that applies when a property is severally owned by two parties.If two co-owners of a property are tenants in common, they own the property indepen...

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A tenbagger is a stock that increases by a factor of ten. Let's say Company XYZ is trading at $5 a share. John Doe buys 100 shares, costing $500. Six months later, the company announces it has fo...

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A tender offer is a proposal by an investor to all current shareholders of a publicly traded corporation to tender their shares for sale at a certain price at a certain time. The prospective acqu...

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The Tennessee Valley Authority (TVA) is the largest public power company in the United States. It supplies electricity, economic development assistance and natural resource management to millions of p...

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In the finance world, a term is the length of time until a debt matures. A term can also be a condition of a deal, as evidenced by the phrase term sheet, which describes the terms of a deal. Let'...

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Also referred to as a time deposit or a certificate of deposit (CD), a term deposit is a type of fixed-term deposit, typically at a banking institution. Term deposits will usually have short-term m...

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Term life insurance is a policy which provides financial coverage during a set amount of time. Often considered the "simplest" form of life insurance, it is best suited for providing coverage or incom...

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A term loan has a set maturity date and usually has a fixed interest rate. Let's say Company XYZ wants to borrow $1 million to build a factory. It meets with its bank, ABC Bank, to negotiate the loan...

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The term structure of interest rates, also called the yield curve, is a graph that plots the yields of similar-quality bonds against their maturities, from shortest to longest.  The term structu...

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The Texas ratio was developed by RBC Capital Markets' banking analyst Gerard Cassidy as a way to predict bank failures during the state's 1980s recession. The ratio is still widely-used throug...

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The Big Board, a popular term for the New York Stock Exchange (NYSE), is the oldest stock exchange in the United States.  It's located on Wall Street in lower Manhattan, and is the world's larges...

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The wealth effect is an increase in consumer spending directly proportional to strong stock portfolio performance. The wealth effect is a behavioral economic theory which posits that consumer spendin...

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The opposite of a liquid market, a thin market is characterized by a small number of participants and high price volatility. The small number of buyers and sellers in a thin market results in low...

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Thinly traded refers to an investor's inability to sell his or her investment at or near its value in a short amount of time. Things that are thinly traded are essentially illiquid. Illiquidity i...

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The third market is an over-the-counter (OTC) market in which brokers and large institutional investors trade exchange-listed securities between one another.The third market is an OTC venue in which b...

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A tick is a minimum change in the price of a security. Also known as a downtick, a minus tick occurs when a security sells at a price less than the preceding sale. A minus tick is the opposite of an u...

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Also called short sale rules, tick test rules are restrictions on when traders can short a stock. Also known as a minus tick, a downtick occurs when a security sells at a price less than the preceding...

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A ticker symbol -- also known as a stock symbol -- is a string of letters used to identify a stock, bond, mutual fund, ETF or other security traded on an exchange. When a company goes public or issue...

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Ticker tape was the paper strip used to transmit stock prices before the use of computers.A typical ticker tape quote has five components: the ticker symbol, shares traded, price, change direction, an...

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A time deposit is an interest-bearing deposit held by a bank or financial institution for a fixed term whereby the depositor can only withdraw the funds after giving notice. Time deposits generally r...

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In the options trading world, there are two components that make up an option's price. The first is intrinsic value (which accounts for the underlying security's perceived value), and the seco...

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Timeliness is a ranking criterion of stocks based on the likely price performance of a stock over a short time period – usually less than 12 months.Stocks are ranked on a 1 - 5 scale, with one t...

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The times interest earned, also known as interest coverage ratio, is a measure of how well a company can meet its interest-payment obligations. The formula for times interest earned is: Ear...

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Title insurance is a type of insurance policy that protects property owners and their lenders against losses resulting from problems with a property title. It provides coverage for financial costs...

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The Tobin's Q ratio is a measure of firm assets in relation to a firm's market value. The formula for Tobin's Q is: Tobin's Q = Total Market Value of Firm / Total Asset Value of Firm ...

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The top line, also called gross sales, usually refers to a company's revenue before subtracting discounts and returns. Let's assume restaurant chain XYZ had $1,000,000 in sales for the year. ...

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A torpedo stock is a stock that rapidly loses market value and follows a downward trend without any sign of recovery.Torpedo stocks are named for the manner in which a ship descends, sinking into the ...

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Total cost of ownership is an asset's cost to the purchaser in addition to the costs associated with using and maintaining it.Total cost of ownership (TCO) can be best exemplified by owning a home...

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Toxic assets are assets that have experienced a significant drop in value and lack an active market where they can be sold. Toxic assets are also known as troubled assets.The most famous examples of t...

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Toxic waste is an idiomatic expression referring to high-risk assets with reputedly low liquidity.Named in reference to the hazardous byproducts of industrial processes, toxic waste frequently describ...

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Tracking error is the difference between a portfolio's returns and the benchmark or index it was meant to mimic or beat. Tracking error is sometimes called active risk. There are two ways to measur...

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A tracking stock is a security that is issued to track the performance of a wholly-owned subsidiary.A large, diversified company may issue a tracking stock based on one of its wholly-owned subsidiarie...

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The trade balance, also known as the "balance of trade (BOT)", is the calculation of a country's exports minus its imports. When a country imports more than it exports, the resulting negative number ...

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When the value of a country's imports exceeds the value of its exports, the resulting negative number is called a trade deficit. Balance of trade (BOT; also called the "trade balance") is ...

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When the value of a country's exports exceeds the value of its imports, the resulting positive number is called a trade surplus. First, let's back up and define another important term. Balance of ...

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A tradeline is a record of activity for a credit account. A tradeline is created on your credit report when you borrow money from a bank or lender who then reports the activity of that account to one ...

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A trademark is any legally-protected abstract or figural representation or slogan associated with a company or product that deliberately differentiates it in the market.A trademark is a marketing devi...

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A company's stock "trades below cash" if its market capitalization is less than the difference between its cash holdings and its liabilities.Trading below cash can be illustrated by a comp...

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Trailing twelve months (TTM), sometimes referred to as last twelve months (LTM), is the 12-month interval of a company's financial performance that occurs before a designated point in time.  TTM...

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A trailing-stop loss order (or trailing-stop) is a special type of trade stop order that manages risk and offers profit protection. This exit strategy adjusts the stop price of a stock or stocks by a ...

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A tranche is a “slice” of an investment in pooled securities, commonly debt instruments such as mortgages, that is sold separately to investors. Tranching allows investors to choose to invest in a...

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Transaction costs are fees incurred during the process of buying or selling a good or service. These costs may include brokers' commissions and spreads in the sale and purchase of securities. When in...

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Transaction risk is the risk that a company will incur losses in a transaction comprising multiple currencies due to exchange rate movements.Companies often engage in transactions involving more than ...

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A transfer agent manages and maintains records of who owns a corporation's or mutual fund's stock or bonds. Most transfer agents are banks or trust companies, although some companies act as th...

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A transfer tax is a tax on the value of goods that one party gives to another.Individuals and organizations frequently give and accept property with no exchange of monetary payment. Two prominent exam...

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A traveler's check is a certified note issued by a bank that may be used by travelers as a risk-free substitute for paper currency. When individuals travel, particularly abroad, they often need cash ...

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Treasuries refer to all the tradable and negotiable debt obligations issued by a country's government. Broadly speaking, when an investor is referring to "Treasuries," he or she is referring to U...

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A Treasury Bill, or T-bill, is short-term debt issued and backed by the full faith and credit of the United States government. These debt obligations are issued in maturities of four, 13 and 26 weeks ...

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Treasury bonds ("T-Bonds") are long-term, semiannual bonds issued by the U.S. Treasury. Their maturities range from 10 to 30 years. T-Bonds are issued with $1,000 par values.T-Bonds are backed...

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Treasury Inflation-Protected Securities (TIPS) are Treasury bonds that are adjusted to eliminate the effects of inflation on interest and principal payments, as measured by the Consumer Price Index (C...

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The Treasury market is where the United States government raises money by issuing debt.The U.S. Treasury currently markets four types of debt instruments: Treasury Bills, Treasury Notes, Treasury Bond...

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Treasury notes, also known as T-notes, are intermediate-term bonds issued by the U.S. Treasury. They mature in two, three, five, or ten years T-notes make semiannual interest payments at fixed coupon...

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Treasury stock is stock repurchased by the issuer and intended for retirement or resale to the public. It represents the difference between the number of shares issued and the number of shares outstan...

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TreasuryDirect is the website used by the U.S. Treasury Department to sell Treasury securities directly to investors.TreasuryDirect is the first and only financial services website that lets investors...

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Trend analysis is a technical analysis of the movement of a stock based on past performance. A trend analysis is a method of analysis that allows traders to predict what will happen with a stock in t...

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Trickle down theory suggests that a policy of tax cuts and other financial benefits to businesses and rich individuals will indirectly benefit the broader and poor population. The basic principle of ...

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On the third Friday of every March, June, September, and December, contracts for stock index futures, stock index options, and stock options all expire at the end of the day. The triple witching hour ...

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The Troubled Asset Relief Program (TARP) is a U.S. government program created in an attempt to mitigate the fallout from the subprime mortgage crisis of 2007-2008. The subprime mortgage crisis ca...

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Troubled assets are assets that have experienced a significant drop in value and lack an active market where they can be sold. Troubled assets are also known as toxic assets. The most famous exam...

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Trust preferred shares (TruPS) are preferred shares typically issued by banks. And although they're called "preferred shares," there is a big difference between trust preferred stock and t...

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A trustee holds or manages cash, assets or a property title for a beneficiary. The trustee has a fiduciary duty to act in the best interest of the beneficiary.   Trustees play an important role...

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The Truth in Lending Act (TILA) was implemented to protect consumers when they borrow money. TILA requires the disclosure of certain credit terms so that consumers are not deceived. The Truth in Lend...

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A turnaround occurs when a company takes successful steps to correct a period of deteriorating financial performance.To turn a business' financial results around, companies often obtain special fi...

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The tweezers candlestick pattern is a formation that always involves two candles. At a tweezers top, the high price of two nearby sessions are identical, or very nearly so. Conversely, a tweezers bott...

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