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“t” Mortgage Term fully explained form you
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. See More.
T. Boone Pickens (1928- ) is a well-known oil tycoon. His first initial stands for Thomas. See More.
The Taft-Hartley Act, officially known as the Labor-Management Relations Act, is a federal labor law that regulates the actions of labor unions. See More.
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. See More.
Tail risk is the risk that an investment will change by more than three standard deviations from its mean. See More.
Tailgating occurs when a broker buys or sells a security after doing the same for a client. See More.
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. See More.
To take a flier means to invest in a highly risky asset or to try for the first time. See More.
Take home pay is the portion of one's salary left after all payroll taxes have been deducted. See More.
Take or pay is a contract that obligates one party to either take possession of certain goods or pay a certain amount. See More.
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. See More.
A takeover target is a company that is a good candidate for purchase by an acquirer. See More.
Taking the Street is slang for buying large amounts of stock from institutions so that those sellers have to buy more stock, which drives the price up. See More.
A tangible asset is anything that has commercial or exchange value and has a physical form. See More.
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 a physical form. See More.
Tangible common equity (TCE) is the common equity listed on the balance sheet minus preferred stock and intangible assets. See More.
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 when calculating this ratio. See More.
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. See More.
Tape shredding occurs when a broker splits a large buy or sell order into a lot of smaller buy or sell orders. See More.
A target firm, also called an acquiree, is a company that is purchased by an acquirer. See More.
A target market is an intended audience for a marketing campaign, product or service. See More.
A tariff is a tax on imports or exports. Money collected under a tariff is called a duty or customs duty. Tariffs are used by governments to generate revenue or to protect domestic industries from competition. See More.
Tax accounting focuses on the preparation, analysis and presentation of tax returns and tax payments. See More.
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. See More.
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. See More.
Tax arbitrage is the act of profiting from differences in how income or capital gains are taxed. See More.
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: net operating losses, business credit carryovers See More.
Tax avoidance is the legal act of minimizing one's taxes. It is not the same as tax evasion, which is illegal. See More.
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 previously written off but is subsequently recovered. See More.
In a tax clawback agreement, a company or organization agrees to repay government benefits via higher taxes at a later date. See More.
Tax court is a court of law in which administrative law judges manage disputes between taxpayers and the IRS. See More.
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. See More.
A tax deduction reduces the amount of income that is subject to tax. A tax deduction is not the same as a tax credit. See More.
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 which they are incurred. See More.
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. See More.
Tax efficiency involves making investing choices that reduce one's tax bill. See More.
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. See More.
Tax expense is the amount of tax owed in a given period. It appears on the income statement. See More.
Tax fraud is the willful and intentional act of lying on a tax return for the purpose of lowering one's tax liability. See More.
Tax Freedom Day is the day of the year by which the average American has earned enough money to pay his or her tax bill for the year. See More.
A tax haven is a country or jurisdiction known for generating little or no tax liability. See More.
A tax holiday is a day or period of time during which a government does not tax certain transactions. See More.
A tax home is a taypayer's primary residence or place of business (if the taxpayer is an organization). See More.
Tax incidence is a term that describes whether producers or consumers bear the burden of a new tax. See More.
The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) was signed into law on May 17, 2006. See More.
Tax indexing is method for adjusting tax rates to account for inflation-related increases in income. See More.
Tax liability refers to the amount legally owed to a taxing authority as the result of a taxable event. See More.
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. See More.
A tax lien certificate is written proof that a taxing authority has placed a lien on a piece of property for unpaid property taxes. See More.
A tax lien foreclosure occurs when a taxing authority seizes a piece of property after the property owner has failed to pay property taxes due. See More.
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. See More.
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. See More.
Tax planning is the process of forecasting one's tax liability and formulating ways to reduce it. See More.
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. See More.
The Tax Reform Act of 1986, signed by President Ronald Reagan, was one of the most significant changes to the American federal income tax system. See More.
Also called the Revenue Reconciliation Act of 1993, the Tax Reform Act of 1993 was a major revision to the United States tax system. See More.
A taxpayer gets a tax refund when he or she has overpaid taxes to the government. See More.
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. See More.
Tax relief is a tax deduction, tax credit, reduction in tax rate or forgiveness of a tax lien. See More.
A tax return is a set of forms that a taxpayer uses to calculate and report taxes owed to the Internal Revenue Service (IRS). See More.
A tax roll is a list of taxable property in a city, county, state or other taxing authority. See More.
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. See More.
A tax shelter is a means of minimizing one's tax liability. Tax shelters can be both legal and illegal. See More.
A tax shield is a deduction, credit or other method used to reduce the amount of taxes owed. See More.
A tax swap is a strategy that involves selling one investment with capital losses and replacing it with a similar, but not identical, investment. See More.
A tax treaty is an agreement between two countries regarding how they tax each other's citizens. See More.
A tax umbrella is a negative profit that reduces a company's tax liability. It usually occurs when a company's tax deductions exceed its taxable income (often because expenses exceeded revenues, making the company unprofitable). See More.
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 wedge is the sum of personal income tax and employee See More.
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. See More.
Also called a cafeteria plan, a tax-advantaged benefits plan is a type of employee-benefit program recognized by section 125 of the Internal Revenue Code. See More.
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 organizations, non-profit organizations, cooperative See More.
A tax-deferred savings plan is an account that allows the account holder to postpone paying taxes on the investments in the account. See More.
A tax-efficient fund is a mutual fund or ETF that minimizes the fundholder's tax bill in some way. See More.
Tax-exempt commercial paper is short-term debt for which the interest payments are tax-exempt at the federal, state or local level. See More.
Tax-exempt interest is interest income that is exempt from federal and/or state taxes. See More.
In investing, a tax-exempt sector is a group of financial instruments that pay tax-exempt interest. However, it also refers to nonprofit organizations, which are tax-exempt. See More.
Generally, tax-exempt securities are those whose interest, dividends or gains are free from federal income taxation. See More.
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. See More.
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 the company to pay capital gains tax on the dives See More.
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, non-profit organizations, cooperative hospital ser See More.
A taxable bond is a bond whose interest payments are taxable at the federal, state and/or local level. See More.
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 equivalent yield is commonly used when evaluating mu See More.
A taxable estate is the portion of a person's net assets that are taxable upon his or her death. See More.
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. See More.
Taxable preferred securities are typically preferred stocks whose dividends are not tax-exempt. See More.
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. See More.
A taxable wage base is the maximum annual wage on which a taxpayer must pay taxes. See More.
"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 recourse against or control over the taxing autho See More.
Taxes are required payments from citizens to governments. The payments fund projects and expenditures that serve the public interest. See More.
A taxpayer is a person or organization that must pay taxes to a federal, state, or local agency. See More.
The Taxpayer Advocate Service (TAS) is an organization within the Internal Revenue Service that is designed to help taxpayers resolve problems with the IRS. See More.
The Taxpayer Bill of Rights is a list of the protections available to all taxpayers when dealing with the Internal Revenue Service. See More.
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 required to obtain a Social Security number. See More.
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. See More.
A teaser loan is usually an adjustable-rate mortgage (ARM) with an artificially low initial interest rate. See More.
A teaser rate is usually an artificially low initial interest rate on an adjustable-rate mortgage (ARM). See More.
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 being analyzed. See More.
A technical rally is a price increase brought on by traders reacting to signals from technical analysis. See More.
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 word "Treasuries" and the ticker symbol fo See More.
In the trading world, a telephone booth refers to a phone bank on the floor of the New York Stock Exchange. See More.
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. See More.
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. See More.
Tenants in common (TIC) describes an ownership status that applies when a property is severally owned by two parties. See More.
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. See More.
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 people in Tennessee and parts of Mississippi, Kentu See More.
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. See More.
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 income for a short term and on a limited budget See More.
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. See More.
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 throughout the banking industry. See More.
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 largest stock exchange by market capitalization of liste See More.
Awesomeness is a state of mind that can be reached by few people ever. See More.
The wealth effect is an increase in consumer spending directly proportional to strong stock portfolio performance. See More.
The opposite of a liquid market, a thin market is characterized by a small number of participants and high price volatility. See More.
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. See More.
The third market is an over-the-counter (OTC) market in which brokers and large institutional investors trade exchange-listed securities between one another. See More.
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 uptick. Although the term is usually used in refer See More.
Also called short sale rules, tick test rules are restrictions on when traders can short a stock. See More.
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. See More.
Ticker tape was the paper strip used to transmit stock prices before the use of computers. See More.
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. See More.
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 second is time value. Time value is basically the r See More.
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. See More.
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: Earnings Before Interest and Taxes/ Interest Expense See More.
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 See More.
The top line, also called gross sales, usually refers to a company's revenue before subtracting discounts and returns. See More.
A torpedo stock is a stock that rapidly loses market value and follows a downward trend without any sign of recovery. See More.
Total cost of ownership is an asset's cost to the purchaser in addition to the costs associated with using and maintaining it. See More.
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. See More.
Toxic waste is an idiomatic expression referring to high-risk assets with reputedly low liquidity. See More.
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 measure tracking error. The first is to subtract the ben See More.
A tracking stock is a security that is issued to track the performance of a wholly-owned subsidiary. See More.
The trade balance, also known as the balance of trade (BOT), is the calculation of a country's exports minus its imports. See More.
When the value of a country's imports exceeds the value of its exports, the resulting negative number is called a trade deficit. See More.
When the value of a country's exports exceeds the value of its imports, the resulting positive number is called a trade surplus. See More.
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. See More.
A company's stock "trades below cash" if its market capitalization is less than the difference between its cash holdings and its liabilities. See More.
A trailing stop is a special type of trade order where the stop-loss price is not set at a single, absolute dollar amount, but instead is set at a certain percentage or a certain dollar amount below the market price. When the price goes up, See More.
A trailing stop-loss order is a special type of trade order where the stop-loss price is not set at a single, absolute dollar amount, but instead is set at a certain percentage or a certain dollar amount below the market price. A trailing stop- See More.
Trailing twelve months (TTM), sometimes referred to as last twelve months (LTM), is the 12-month interval that occurs before a designated point in time. See More.
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. See More.
Transaction risk is the risk that a company will incur losses in a transaction comprising multiple currencies due to exchange rate movements. See More.
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 their own transfer agents. See More.
A transfer tax is a tax on the value of goods that one party gives to another. See More.
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. See More.
Treasuries (sometimes spelled "treasurys") 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.S. See More.
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 in various denominations as low as $1,000. See More.
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. See More.
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 (CPI). See More.
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 Bonds and Treasury Inflation Protected Securities (TIP See More.
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 See More.
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 outstanding. See More.
TreasuryDirect is the website used by the U.S. Treasury Department to sell Treasury securities directly to investors. See More.
Trend analysis is a technical analysis of the movement of a stock based on past performance. See More.
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. See More.
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 is the final trading hour on those days. See More.
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. See More.
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. See More.
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 traditional preferred stock (issued by companies). See More.
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 for businesses and individuals. In many cases, tr See More.
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. See More.
A turnaround occurs when a company takes successful steps to correct a period of deteriorating financial performance. See More.