T
A Nasdaq stock symbol specifying that the stock has warrants or rights.
T+1 (T+2,T+3)
Abbreviations that refer to the settlement date of security transactions. The T stands for transaction date, which is the day the transaction takes place. The numbers 1, 2 or 3 denote how many days after the transaction date the settlement or the transfer of money and security ownership takes place.

Tactical Asset Allocation - TAA
An active management portfolio strategy that rebalances the percentage of assets held in various categories in order to take advantage of market pricing anomalies or strong market sectors.

Taft-Hartley Act
A Federal law that was enacted in 1947 that prohibited certain union practices and required improvement in union disclosure of financial and political dealings.

Tag-Along Rights
A contractual obligation used to protect a minority shareholder (usually in a venture capital deal). Basically, if a majority shareholder sells their stake, then the minority shareholder has the right to join the transaction and sell their minority stake in the company. Also referred to as "co-sale rights".

Tailgating
The action of a broker or advisor purchasing or selling a security for his or her client(s) and then immediately making the same transaction in his or her own account.

Take A Bath
A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative position. Investors whose shares have declined significantly are said to have taken a bath.

Take A Flier
The slang term for a decision to invest in highly speculative investments.

Take or Pay
A provision, written into a contract, whereby one party has the obligation of either taking delivery of goods or paying a specified amount.

Take-Profit Order - T/P
An order used by currency traders specifying the exact rate or number of pips from the current price point where to close out their current position for a profit. The rate deemed to be the level where the trader wants to take a profit is sometimes referred to as the "take-profit point".

Takedown
1. The price at which underwriters obtain securities to be offered to the public.
2. The portion of securities that each investment banker will distribute in a secondary or initial pubic offering.

Takeover
A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.

Takeunder
A corporate takeover where the target firm is offered a price per share that is less than its current market value.

Taking the Street
A slang phrase referring to the hedge fund tactic of buying large amounts of a particular stock from banks and brokers in an effort to clean out these institutions' inventory in a short period of time

Tangible Asset
An asset that has a physical form such as machinery, buildings and land.

Tankan Survey
An economic survey of Japanese business issued by the central Bank of Japan, which it then uses to formulate monetary policy. The report is released four times a year in April, July, October and mid-December.

Tape Is Late
A situation on the trading floor where trading volume is so heavy that the real-time ticker quotes are delayed by a minute or two. When the tape is late some price or volume digits will be deleted.

Target Firm
A firm that has been targeted by another firm for a takeover.

Target-Benefit Plan
A benefit plan that is similar to a defined benefit plan since contributions are based on projected retirement benefits. However, unlike a defined benefit plan, the benefits provided to participants at retirement are based on the performance of the investments, and are therefore not guaranteed.


Tariff
A taxation imposed on goods and services imported into a country. Also known as a duty tax.

Tax Anticipation Notes - TAN
Short-term debt securities issued in anticipation of future tax collections.

Tax Base
The assessed value of a set of assets, investments or income streams that is subject to taxation, or the assessed value of a single asset that is subject to taxation. Anything that can be taxed has a tax base.

Tax Bracket
The rate at which an individual is taxed due to a particular income level.

Tax Court
A court of law whose sole jurisdiction is to decide litigation involving federal income, death, and other taxes.

Tax Credit
A dollar-for-dollar reduction in the tax payment required from a person.

Tax Deferred
Refers to investment earnings such as interest, dividends or capital gains that accumulate free from taxation until the investor withdraws and takes possession of them. The most common types of tax-deferred investments include those in individual retirement accounts (IRAs) and deferred annuities.

Tax Equity And Fiscal Responsibility Act Of 1982 - TEFRA
Federal tax legislation passed in 1982 that modified some aspects of the Economic Recovery Tax Act of 1981 (ERTA). Both of these pieces of tax legislation took place during the Reagan Presidency.

Tax Equivalent Yield
The pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax-free municipal bond. This calculation can be used to fairly compare the yield of a tax-free bond to that of a taxable bond in order to see which bond has a higher applicable yield.

Tax Evasion
An illegal practice whereby an individual intentionally avoids paying their true tax liability. Anyone caught evading taxes is generally subject to criminal charges and substantial penalties.

Tax Gain/Loss Harvesting
A process of selling securities at a loss to offset a capital-gains tax liability. It is typically used to limit the recognition of short-term capital gains, which are normally taxed at higher federal income-tax rates than long-term capital gains. Also known as "tax-loss selling".

Tax Haven
A country that offers individuals and businesses little or no tax liability.

Tax Holiday
A government incentive program that offers a tax reduction to foreign investors.

Tax Home
An individual's primary place of work or residence. This is used when determining tax for travel or transportation expenses.

Tax Liability
The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event. Taxable events include, but are not limited to, annual income, the sale of an asset, a fiscal year-end or an inheritance. Tax liability can be calculated by applying the appropriate tax rate to the taxable event's tax base.

Tax Lien
A claim imposed by the federal government to liquidate a person's property until the tax and debt owed is fully paid.

Tax Lien Certificate
A certificate of claim against property that has a lien placed upon it as a result of unpaid property taxes.

Tax Lot Accounting
A record keeping technique that traces the dates of purchase and sale, cost basis, and transaction size for each security in your portfolio, even if you make more than one trade in the same security.

Tax Rate
1) The rate at which a business or person is taxed on income. Essentially the percent of income that goes towards taxes.
2) The rate of tax on good and services.

Tax Reform Act Of 1986
Federal legislation that modified many significant aspects of the U.S. tax system.
Tax Return
The tax form used to file income taxes with the Internal Revenue Service (IRS).

Tax Schedule
A scale published by the IRS, it is used for taxpayers with taxable income over $100,000

Tax Shelter
A legal method of minimizing or decreasing an investor's taxable income and, therefore, their tax liability. Tax shelters can range from investments or investment accounts that provide favorable tax treatment, to activities or transactions that lower taxable income. The most common type of tax shelter is an employer-sponsored 401(k) plan.

Tax Shield
The reduction in income taxes that results from taking an allowable deduction from taxable income.

Tax Swap
A method of crystallizing capital losses by selling losing positions and purchasing companies within similar industries that have similar fundamentals.

Tax Table
A table that shows the amount of tax payable depending on an individual's income bracket.

Tax Treaty
A bilateral agreement made by two countries to resolve issues involving double taxation of passive and active income. Tax treaties generally determine the amount of tax that a country can apply to a taxpayer's income and wealth. Tax haven countries are the only countries that typically do not enter into tax treaties.

Tax Year
The 12-month period for which you are filing your tax return

Tax-Exempt Commercial Paper
An unsecured short-term loan, usually issued to finance short-term liabilities, that provides the debt holders (bondholders) some level of tax preference on the earnings from their debt investment at a local, state or federal level, or a combination thereof.

Tax-Exempt Interest
Interest income that is exempt from federal income tax. Although it is not directly taxed, this income may still be required to determine other tax calculations such as social security benefits.

Tax-Sheltered Annuity
A type of annuity that allows an employee to make contributions from his or her income into a retirement plan. The contributions are deducted from the employee's income and, as a result, the contributions and related benefits are not taxed until the employee withdraws them from the plan. Because the employer can also make direct contributions to the plan, the employee gains the benefit of having additional tax-free funds accruing.

Taxable Bond
A debt security whose return to the investor is subject to taxes at the local, state or federal level, or some combination thereof.

Taxable Estate
The total value of a deceased person's assets that are subject to taxation - minus liabilities and minus the prescribed tax-deductible portion of assets left behind by the deceased.

Taxable Gain
The portion of a sale that is liable to taxation.

Taxable Income
The amount of net income used in calculating income tax.

Taxes
An involuntary fee levied on corporations or individuals that is enforced by a level of government in order to finance government activities.

Taylors Rule
A guideline for interest rate manipulation. It was introduced by Stanford economist John Taylor in order to set and adjust prudent rates that will stabilize the economy in the short-term and still maintain long-term growth. This rule is based on 3 factors:
1) Actual versus targeted inflation levels
2) Actual employment versus full employment levels
3) The appropriate short-term interest rate consistent with full employment.

Tear Sheets
Slang for the pages from the S&P stock reports summarizing business and financial information regarding thousands of public companies.



Teaser
A document circulated to potential buyers of a specific security that may be offered for sale in the future. The document, often prepared by the investment bank representing the company, details information that is designed to entice potential buyers to buy the security.

Tech Street
A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.

Technical Analysis
A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

Technical Bankruptcy
The state of a company or person who has defaulted on a financial obligation and would be declared bankruptcy if the creditor makes a claim through the courts.

Technical Rally
An upward movement in a security's price following a declining trend. The movement is caused by technical as opposed to fundamental factors affecting sentiment.

Technical Rank
This ranks a stock's Technical Rating within its industry group. For example, if a stock ranks 1st out of 100, its Technical Rating outscores 99% of stocks in its industry. If 2 or more stocks within a group have the same 1-99 rating, they will receive the same Technical Rank. For example, if 3 stocks have a 99 Technical Rating, they will all three be ranked best in group. The stock with the next best rating will be ranked 4th in group.

Technical Rating
This exclusive rating assesses the overall investment performance of a stock, relative to all other publicly-traded companies. Ratings are on a 1-99 scale, with 99 being highest. For example, a Technical Rating of 90 indicates a stock’s overall technical performance has outpaced 90% of the market.
Technical measurements include:
· Relative Price Strength Rating
· The stock’s current price relative to its 52 week price high
· Moving Average trends
· Recent and past price and volume activity
Components are not equally weighted.


Technically Strong Market
A situation in which the stock market is rising on high volume or falling on low volume.

Technically Weak Market
A situation in which the stock market is rising on low volume or falling on high volume.

Ted Spread
The price difference between three-month futures contracts for U.S. Treasuries and three-month contracts for Eurodollars having identical expiration months.

Teenie
A measure of value representing a sixteenth (1/16 or .0625) of one point. Since decimalization, many traders have referred to a teenie as a cent.

Telecommunications Consumer Protection Act of 1991 - TCPA
A U.S. federal law created in response to increased consumer concern and complaints directed at the Federal Communications Commission (FCC) regarding the use of telephones for solicitation of business.

Telephone Booth
A slang term referring to one of the many phone terminals on the floor of the New York Stock Exchange that is used by floor traders to receive orders

Tenants By Entirety - TBE
When a property is owned by two or more tenants. If one owner dies, the survivor takes the whole estate.

Tenants In Common - TIC
When a property is owned by two or more tenants. If one owner dies, the other does not automatically take the entire estate.


Tenbagger
A stock whose value increases ten times.


Tender
1. To accept a formal offer, such as a takeover bid or tender offer.
2. Means of settlement in a financial transaction.
3. A bid to buy treasury bills.
4. Notice from a futures contract seller to offer money or goods for settlement of a futures contract.

Tender Offer
An offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the market price.

Tenor
The term or life of a contract.

Tequila Effect
Informal name given to the impact of the 1994 Mexican economic crisis on the South American economy. The crisis occurred because of a sudden devaluation in the Mexican peso, which then caused other currencies in the region (the Southern Cone and Brazil) to decline. The falling peso was propped up by a US$50-billion loan granted by then-U.S. president Bill Clinton.
Also referred to as the "Mexican Shock".

Term
1. The lifespan assigned to an asset or a liability, over which the value of the asset/liability is expected to either grow or shrink, depending on its nature.
2. The period of time assigned as the lifespan of any investment. In the case of debt, the time it takes for all payments to be made by the borrower and received by the lender. In the case of an equity investment, the time that elapses between the acquisition of the equity and its sale or removal from holdings for another reason.

Term Bond
An issue of bonds that all have the same maturity date.

Term Certain Annuity
An insurance product that guarantees a periodic payment of a predetermined amount for a fixed term. Once the term has elapsed, these products are spent and offer no possibility of any future payments, even if the annuitant is still alive. Annuitants may choose to purchase these products gradually by making periodic payments, or they may make a purchase with a single lump sum payment. Usually, lump sum purchases are made at, or shortly after, the annuitant's retirement.



Term Deposit
A deposit held at a financial institution that has a fixed term. These are generally short-term with maturities ranging anywhere from a month to a few years. When a term deposit is purchased, the lender (the customer) understands that the money can only be withdrawn after the term has ended or by giving a predetermined number of days notice.


Term Life Insurance
A policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage terminate. This type of insurance policy contrasts with permanent life insurance, whose duration extends until the policy owner reaches 100 years of age (i.e. death).

Term Loan
A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate. Term loans almost always mature between one and 10 years.

Term Out
The transfer of debt within a company's balance sheet without acquiring new debt. This is done through the capitalization of short-term to long-term debt.


Term Sheet
A non-binding agreement setting forth the basic terms and conditions under which an investment will be made.

Term Structure of Interest Rates
A yield curve displaying the relationship between spot rates of zero-coupon securities and their term to maturity.

Term to Maturity
The remaining life of a financial instrument. In bonds, it is the time between now and when the bond matures (maturity date), when the issuer must redeem the bond by paying the principal (or face value).

Terminal Elevator
An agricultural elevator that is considered to be the largest accumulator of the actual.

Terminal Value - TV
The value of an investment at the end of a period, taking into account a specified rate of interest

Terminal Year
For income tax and estate planning, this refers to the year in which a person has died.

Terminally Ill
When a person is not expected to live more than 12 months.

Terotechnology
A Greek word referring to the study of the costs associated with an asset throughout its life cycle, from acquisition to disposal. The goals of this approach are to try to reduce the different costs incurred at the various stages of the asset's life and to derive methods that will help extend the asset's life span. Also known as "life-cycle costing".
Terotechnology uses tools such as net present value, internal rate of return and discounted cash flow in an attempt to minimize the costs associated with the asset in the future. These costs can include engineering, maintenance, wages payable to operate the equipment, operating costs and even disposal costs.

Tertiary Industry
The segment of the economy that provides services to its consumers. This includes a wide range of businesses including financial institutions, schools, transports and restaurants.
Also known as "tertiary sector of industry," or "service industry/sector".

Test
In technical analysis, it is when a stock price approaches a support or resistance level set by the market. If the stock stays within the support and resistance levels, the test is passed. However, if the stock price reaches new lows and/or new highs, the test has failed.

Testamentary Trust
A trust created as a result of explicit instructions from a deceased's will.

THB
In currencies, this is the abbreviation for the Thai Baht.

The Bond Buyer
A century-old U.S. newspaper published five times a week covering the municipal bond industry. Banks, underwriters, government agencies, Wall Street firms, insurance companies and others read it for municipal bond news, trends and analysis.

The Conference Board
A not-for-profit research organization for businesses that distributes information about management and the marketplace. It is a widely quoted private source of business intelligence.

The Wealth Effect
The premise that when the value of stock portfolios rises due to escalating stock prices, investors feel more comfortable and secure about their wealth, causing them to spend more. For example, economists in 1968 were baffled when a 10% tax hike failed to slow down consumer spending. Later this continued spending was attributed to the wealth effect. While disposable income fell as a result of increased taxes, wealth was rising sharply as the stock market moved up. Undaunted, consumers continued their spending spree.


The World Bank
An international organization dedicated to providing financing, advice and research to developing nations to aid their economic advancement.

Theoretical Dow Jones Index
A method of calculating a Dow Jones index (most often the DJIA) that assumes all index components hit their high or low at the same time during the day.

Theta
A measure of the rate of decline in the value of an option due to the passage of time. Theta can also be referred to as the time decay on the value of an option. If everything is held constant, then the option will lose value as time moves closer to the maturity of the option.
Theta is part of the group of measures known as the "Greeks" (other measures include delta, gamma and vega) which are used in options pricing.

Thin Market
A market with few bid and ask offers. The market is characterized by low liquidity, high spreads, and high volatility. Also known as a narrow market.

Third Market
Trading by non exchange-member brokers/dealers and institutional investors of exchange-listed stocks. In other words, the third market involves exchange-listed securities that are being traded over-the-counter between brokers/dealers and large institutional investors.

Third Market Maker
A third-party firm willing to buy or sell stocks listed on exchanges at publicly quoted prices.


Third-Party Distributor
The name given to institutions that sell or distribute mutual funds to investors for fund management companies without direct relation to the fund itself.

Thirty-Year Treasury
A U.S. Treasury debt obligation that has a maturity of 30 years. The 30-year Treasury is the benchmark U.S. bond and one of the world's most closely watched financial instrument.

Three-Year Rule
Section 2035 of the tax code, which stipulates that assets that have been gifted through an ownership transfer, or assets for which the original owner has relinquished power, are to be included in the gross value of the original owner's estate if the transfer took place within three years of his or her death. If gifted assets do not meet the necessary requirements, the value of the assets is added to the value of the estate at the time of the original owner's death, increasing its value and the estate taxes imposed on it.

Thrift Bank
A bank whose main purpose is to take deposits from consumers and make home mortgages.


Tick
The minimum upward or downward movement in the price of a security.


Tick Index
The number of stocks trading on an uptick minus the number of stocks trading on a downtick.


Tick-Test Rules
Restrictions on when a short sale may be executed. Tick-test rules dictate that a short sale can be made only in two situations:
1. When the price of the particular stock is higher than the last trade price (an uptick).
2. In a case where there is no change in the last trade price. The previous trade price must be higher than the trade price that preceded it (a zero uptick or zero plus tick)


Ticker Symbol
An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors use to place trade orders. Every listed security has a unique ticker symbol, facilitating the vast array of trade orders that flow through the financial markets every day.


Ticker Tape
A computerized device that relays financial information to investors around the world, including the stock symbol, the latest price, and volume on securities as they are traded.

Tide
A metaphor for a long-term market trend.

Tied Selling
The illegal practice of a company providing a product or service on condition the customer purchases a product from the same or related company. It is mainly used in reference to banks and referred to as coercive tied selling.
Tier 1 Capital
A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves.

Tier 2 Capital
A term used to describe the capital adequacy of a bank. Tier II capital is secondary bank capital that includes items such as undisclosed reserves, general loss reserves, subordinated term debt, and more.

Tiger Economy
A nickname given to the economies of southeast Asia. Some of the tigers are Indonesia, Singapore, Malaysia, Thailand, South Korea and China.

Tight Money
A situation in which money or loans are very difficult to obtain in a given country. If you do have the opportunity to secure a loan, then interest rates are usually extremely high. Also known as "dear money".



Time Decay
The ratio of the change in an option price to the decrease in time to expiration. Since options are a wasting asset, their value declines over time. As an option approaches its expiry date without being in the money, its time value declines since the probability of that option being profitable (in the money) is reduced. Also known as "theta" and "time-value decay".

Time Deposit
A savings account or CD held for a fixed-term with the understanding that the depositor can only withdraw by giving written notice.

Time Horizon
The length of time for which an investment is made, or held, before it is liquidated. Time horizons can range from seconds, in the case of a day trader, all the way up to decades for a buy-and-hold investor. There is no "right" time frame - it depends on the investor's individual objectives.

Time In Force
A special instruction used when placing a trade to indicate how long an order will remain active before it is executed or expires. Time-in-force options allow traders to be more specific about the time parameters in which an order is activated. This is especially important for active traders.



Time Segmented Volume - TSV
A technical analysis indicator, developed by Worden Brothers Inc., that segments a stock's price and volume according to time intervals. The price and volume data are then compared to one another in order to uncover periods of accumulation (buying) and distribution (selling).

Time Series
A sequence of numerical data points in successive order, usually occurring in uniform intervals. In plain English, a time series is simply a sequence of numbers collected at regular intervals over a period of time.

Time Value
The portion of the option premium that is attributable to the amount of time remaining until the expiration of the option contract.



Time Value of Money
The idea that money available at the present time is worth more than the same amount in the future, due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. Also referred to as "present discounted value".

Timeliness Rating
Proprietary rating system based upon recent earnings changes and price performance indicating possible or potential relative price performance over the next 12 months. General market factors are not considered in the stock rating system. Ratings presented are updated daily, from A (highest) to E (lowest). While stocks with ratings of A and B may outperform stocks with ratings of C and D in up markets, higher rated stocks can be more volatile and may involve added risk. Price stability may be improved by giving preference to stocks with lower betas, no debt or low debt, larger capitalization (common shares outstanding) with more established markets, and an extension in price no more than 5% to 10% above a recent consolidation or basing area of 8 or more weeks duration.
Caution should be used when considering purchase of any A-Rated stocks. High rated stocks frequently involve added volatility and risk, as well as added potential. Safety may be improved by selecting A & B rated stocks with lower Betas, lower % debt, larger capitalizations and by avoiding stocks extended in price more than 5% to 10% from the most recent price consolidation zone (or basing area) of 2 to 3 months or more. Smaller capitalization stocks are usually more volatile and speculative in nature, and low priced stocks are of lower quality. General market conditions should also be considered since the best of stocks will be affected by adverse market periods.

Times Interest Earned - TIE
A metric used to measure the ability of a company to meet its debt obligations. It is calculated by taking a company's earnings before interest and taxes (EBIT) and dividing by the total interest payable on bonds and other contractual debt. It is usually quoted as a ratio and indicates how many times a company can cover it's interest charges on a pretax basis since failure to meet these obligations could force a company into bankruptcy.
Times Interest Earned = EBIT / Total Interest


Tip from a Dip
Advice from a person who claims to have inside information, such as substantially higher than expected earnings or government approval of corporate mergers, that will materially impact a stock's price but actually doesn't.

Tip Income
Funds received over and above wages for services rendered. Also known as gratuities.

Tipping
The act of providing material non-public information about a publicly-traded company to a person who is not authorized to have the information. This is an illegal act. Information is considered non-public until it has been publicly released and the financial markets have had sufficient time to digest the impact the information may have had on prices.


Tirone Levels
A series of three sequentially higher horizontal lines used to identify possible areas of support and resistance for the price of an asset. The position of the center line is plotted by calculating the difference between the highest high and the lowest low for the asset price over a period of time and dividing it by 2. The top and bottom line are drawn 1/3 and 2/3 of the difference, respectively, between the same high and low that are used to calculate the center line.


Title
The right to the ownership and possession of any item that may be legally recognized as belonging to someone or something. In its most basic sense, title is the recognition of ownership.
There are three components to the concept of title possession or occupation, the right of possession and apparent ownership.

Title Search
An examination of public records to determine and confirm a property's legal ownership, and find out what claims are on the property. A title search is usually performed by a title company or an attorney, who researches the vested owner, the liens or other judgments on the property, the loans on the property and the property taxes due.

TND
In currencies, this is the abbreviation for the Tunisian Dinar.

To Be Announced - TBA
An underlying contract on a mortgage backed security to buy or sell a MBS which will be delivered at an agreed-upon date in the future.

Today's High
The intraday high trading price. In other words, this is the highest price at which a stock traded during the course of the day.


Today's Low
The intraday low trading price. In other words, this is the lowest price at which a stock traded during the course of the day.

Toehold Purchase
A purchase of less than 5% of a target company's outstanding stock made by an acquiring company.

Tokyo Stock Exchange - TSE
The stock exchange headquartered in Tokyo, Japan.

Toll Revenue Bond
A type of municipal bond used to build a public project such as a bridge, tunnel or expressway. The principal and interest repayments are supplied by revenues from tolls paid by users of the public project in question.

Tombstone
A written advertisement placed by investment bankers in a public offering of a security. It gives basic details about the issue and, in order of importance, the underwriting groups involved in the deal.


Tomorrow Next - Tom Next
In currency transactions, the purchase and sale of a currency made to avoid taking actual delivery of the currency. The current position is closed out at the daily close rate and re-entered at the new opening rate the next trading day. Also referred to as "tomorrow next procedure".

Top
The highest price level reached by a security, index of securities, commodity or economic cycle in a given time period, followed by at least a short-term decline.

Top 5 Companies In The Industry Group
An industry group's top 5 companies based on the Overall Rating, listed in order of the best. Stocks under $10 or with an average daily volume under 10,000 shares are excluded. In the case that 2 or more stocks have the same Overall Rating, a secondary sort is implemented.

Top Composite Rating Tab
The IBD SmartSelect® Composite Rating combines all 5 SmartSelect Ratings into one easy-to-use rating. More weight is placed on EPS and RS Rating, and the stock's percent off its 52-week high is also included in the formula. Results are then compared to all other companies, and each company is assigned a rating from 1-99 with 99 being the best. A 90 rating means that the stock has outperformed 90% of all other stocks in terms of its combined SmartSelect Ratings. This tab in IBD's "Top Rated Stocks Under $10" product screens stocks for a Composite Rating of 85 and higher.




Top Earnings Per Share (EPS) Rating Tab
Stocks are rated on a 1 to 99 scale (with 99 being best) comparing a company's earnings per share growth on both a current and annual basis with all other publicly traded companies in the William O'Neil + Co., Inc. database. Stocks with EPS Ratings of 80 or above have outperformed 80% of all publicly traded companies in earnings. The EPS Rating combines each company's most recent two quarters of earnings-per-share growth with its three- to five-year annual growth rate.
This tab in IBD's "Top Rated Stocks Under $10" product screens stocks with an Earnings Per Share Rating of 85 or higher.

Top Line
A reference to sales or revenue.

Top Relative Strength Rating Tab
This IBD SmartSelect® Relative Strength Rating measures each stock's price performance over the latest twelve months compared to all other stocks. The rating scale ranges from 1 (lowest) to 99 (highest). Stocks rating below 70 indicate weaker relative price performance.
This tab in IBD's "Top Rated Stocks Under $10" product screens stocks for a Relative Strength Rating of 85 and higher.

Top-Down Investing
An investment approach where an investor looks at a country's economy before considering an industry to invest in. Next, they determine what industries or sectors will return well because of the economic conditions and, finally, they then buy stocks that are attractive within that industry.

Toronto Stock Exchange - TSX
The largest stock exchange in Canada, traditionally home to a large number of natural resource companies


Total Cost Of Ownership - TCO
In general, the purchase price of an asset plus the additional costs of operation.

Total Debt Service Ratio - TDS
A debt service measure that financial lenders use as a rule of thumb to give a preliminary assessment of whether a potential borrower is already in too much debt. More specifically, this ratio shows the proportion of gross income that is already spent on housing-related and other similar payments.
Receiving a ratio of less than 40% means that the potential borrower has an acceptable level of debt.


Total Debt To Total Assets
A metric used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. Calculated by adding short-term and long-term debt and then dividing by the company's total assets.


Total Enterprise Value - TEV
A valuation measurement used to compare companies with varying levels of debt. This is calculated as:
TEV = Market Capitalization + Interest Bearing Debt + Preferred Stock - Excess Cash.



Total Enterprise Value - TEV
A valuation measurement used to compare companies with varying levels of debt. This is calculated as:
TEV = Market Capitalization + Interest Bearing Debt + Preferred Stock - Excess Cash.

Total Expense Ratio - TER
A measure of the total costs associated with managing and operating an investment fund such as a mutual fund. These costs consist primarily of management fees and additional expenses such as trading fees, legal fees, auditor fees and other operational expenses. The total cost of the fund is divided by the fund's total assets to arrive at a percentage amount, which represents the TER:

Total Return
When measuring performance, the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time.

Total Return Swap
A swap agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains. The underlying asset that is used can be anything, but is usually an equities index, loan or a basket of assets.



Total Shareholder Return - TSR
1. The total return of a stock to an investor (capital gain plus dividends).
2. The internal rate of return of all cash flows to an investor during the holding period of an investment.

Total Shareholder Return - TSR
1. The total return of a stock to an investor (capital gain plus dividends).
2. The internal rate of return of all cash flows to an investor during the holding period of an investment.
Total Utility
The full satisfaction of a consumer's wants or needs through the consumption of specific goods or services.

Touchline
The highest bid and lowest ask at market for a particular security during a given time in the trading day.

Toxic Waste
A slang term referring to securities that are unattractive due to certain underlying provisions or risks making them generally illiquid with poor pricing schemes and transparency.


Track Price
A chart tool for determining exact historical price/volume information. May also be use to align items with its corresponding date and/or scale.
To access the Track-Price tool, place the cursor over an item on the chart, then press and hold the right-hand mouse button. The Track-Price Box and Track-Price Lines will appear.
The Track-Price Box provides the date, price high/low/last/change, and volume details for any market trading day.
The Track-Price Lines are a display of horizontal and vertical lines that intersect at the cursor. Use this tool to align items on the chart with its corresponding date or scale.

Tracker Fund
A type of mutual fund that provides the same returns as an index. The fund invests in all the companies within the index according to a market value weighting.

Tracking Error
A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This is often in the context of a hedge that did not work as effectively as intended, creating an unexpected profit or loss instead.

Tracking Stock
1. Common stock issued by a parent company that tracks the performance of a particular division without having claim on the assets of the division or the parent company. Also known as "designer stock".
2. A type of security specifically designed to mirror the performance of a larger index.

Trade
1. A transaction involving the sale and purchase of a security.
2. In general, the buying and selling of goods and services.

Trade Date
The date on which a security trade occurs

Trade Finance
The science that describes the management of money, banking, credit, investments, and assets for international trade transactions

Trade or Fade Rule
An option exchange rule that prevents the occurrence of a trade through.

Trade Sanction
A trade penalty imposed by one nation onto one or more other nations.

Trade Through
The completion of a client's order at a price inferior to the best posted bid or ask.

Trade Volume Index - TVI
A technical indicator that measures the amount of money flowing in and out of an asset. Unlike many technical indicators, the TVI is generally created using intraday price data. The underlying assumption of this indicator is that there is buying pressure when the price trades near the asking price and selling pressure when it trades near the bid.

Trade Working Capital
The difference between current assets and current liabilities directly associated with everyday business operations.


Trade-Weighted Dollar
A representation of the foreign currency price of the U.S. dollar or the export value of the U.S. dollar.

Trademark
A symbol, word, phrase, logo, or combination of these that legally distinguishes one company's product from any others. Any infringement on a trademark is illegal and therefore grounds for the company owning the trademark to sue the infringing party.


Trading Account
1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer.
2. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy.

Trading Account
1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer.
2. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy.

Trading Ahead
A trade transacted from a specialist's account even though there is a public order that offsets the trade.

Trading Below Cash
When a company's total share value is less than its cash minus debts.

Trading Book
The portfolio of financial instruments held by a brokerage or bank. The financial instruments in the trading book are purchased or sold to facilitate trading for their customers, to profit from spreads between the bid/ask spread, or to hedge against various types of risk.

Trading Channel
When charting the price of an asset, this is the space on the chart between an asset's support and resistance levels. The price of the asset will stay within the support and resistance levels until a breakout occurs.

Trading Curb
A temporary restriction on program trading in a particular security or market, usually to reduce dramatic price movements. Also known as a collar or circuit breaker.

Trading Desk
A desk where transactions for buying and selling securities occur. Trading desks can be found in most organizations (banks, finance companies, etc.) involved in trading investment instruments such as equities, fixed-income securities, futures, commodities and foreign exchange. A trading desk provides traders with access to instantaneous trade executions. Also known as "dealing desk".

Trading Dollars
Slang for a company that is spending just as much money as it is making on a product that it develops.

Trading Halt
A temporary suspension in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. A trading halt may also be imposed for purely regulatory reasons. During a trading halt, open orders may be canceled and options may be exercised.

Trading Range
The spread between the high and low prices traded during a period of time.

Traditional IRA
An IRA that is not a Roth IRA or a SIMPLE IRA. Individual taxpayers are allowed to contribute 100% of compensation (Self-employment income for Sole proprietors and partners) up to a specified maximum dollar amount to their Traditional IRA. Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer's income, tax-filing status, and coverage by an employer-sponsored retirement plan.

Traditional Whole Life Policy
A type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. Unlike term life insurance, which covers the contract holder until a specified age limit, a traditional whole life policy never runs out. Upon the inevitable death of the contract holder, the insurance payout is made to the contract's beneficiaries. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.

Trailer Fee
A fee that a mutual fund manager pays to a salesperson who sells the fund to investors.

Trailing
A term used to describe the most recent time period.

Trailing EPS
The sum of a company's earnings per share for the previous four quarters.

Trailing Price-To-Earnings - Trailing P/E
The sum of a company's price-to-earnings, calculated by taking the current stock price and dividing it by the trailing earnings per share for the past 12 months. This measure differs from forward P/E, which uses earnings

Trailing Stop
A stop-loss order that is set at a percentage level below (for a long position) the market price. The price is adjusted as the price fluctuates.


Trailing Twelve Months - TTM
The timeframe of the past twelve months (the past year) used for reporting financial figures

Tranches
A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. "Tranche" is the French word for "slice".

Transaction
An agreement between a buyer and a seller for the exchange of goods or services for payment.

Transaction Costs
Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price at which it can be sold).

Transaction Exposure
The risk, faced by companies involved in international trade, that currency exchange rates will change after the companies have already entered into financial obligations. Such exposure to fluctuating exchange rates can lead to major losses for firms.

Transaction Risk
The exchange rate risk associated with the time delay between entering into a contract and settling it. The greater the time differential between the entrance and settlement of the contract, the greater the transaction risk, because there is more time for the two exchange rates to fluctuate.

Transfer
A tax-free, non-reportable movement of assets between retirement plans.

Transfer Agent
A trust company, bank or similar financial institution assigned by a corporation to maintain records of investors and account balances and transactions, to cancel and issue certificates, to process investor mailings and to deal with any associated problems (i.e. lost or stolen certificates).

Transfer Payment
1. In the United States, a payment made to individuals by the federal government through various social benefit programs.
2. In Canada, a payment made to the provinces and territories by the federal government.

Transfer Price
The price at which divisions of a company transact with each other. Transactions may include the trade of supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities.
Also known as "transfer cost".

Transfer Procedures
The procedure by which ownership of a stock moves from one party to another. The transfer agent follows a detailed, documented series of steps governed by the SEC to ensure that a transaction has been completed.


Transfer-On-Death - TOD
A way of designating beneficiaries to receive your assets at the time of your death without having to go through probate. This designation also allows you to specify the percentage of assets each person or entity (your "TOD beneficiary") will receive. Your assets will then be automatically transferred to the designated beneficiaries upon your death.



Translation Exposure
The risk that a company's equities, assets, liabilities or income will change in value as a result of exchange rate changes. This occurs when a firm denominates a portion of its equities, assets, liabilities or income in a foreign currency.

Also known as "accounting exposure".

Translation Risk
The exchange rate risk associated with companies that deal in foreign currencies or list foreign assets on their balance sheets. The greater the proportion of asset, liability and equity classes denominated in a foreign currency, the greater the translation risk.

Transportation Expenses
A business expense incurred by an employee or self-employed taxpayer while away from home in a travel status.

Traunch
One of many influxes of cash that is part of a single round of investment.

Travel Expenses
Business expenses incurred while an individual is away from home. These include meals, lodging, and transportation expenses.

Treasury Bill - T-Bill
A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations of $1,000 up to a maximum purchase of $5 million and commonly have maturities of one month (four weeks), three months (13 weeks) or six months (26 weeks).
T-bills are issued through a competitive bidding process at a discount from par, which means that rather than paying fixed interest payments like conventional bonds, the appreciation of the bond provides the return to the holder.

Treasury Bond - T-Bond
A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. The bonds make interest payments semi-annually and the income that holders receive is only taxed at the federal level.

Treasury Index
An index based on the auctions of U.S. Treasury bills, or on the U.S. Treasury's daily yield curve. It is commonly used in determining mortgage rates for mortgages with an unfixed component and as a performance benchmark for investors in the capital markets as it represents a rate of return that investors would be able to get from almost any bank, with minimal effort. Treasury indexes are proprietary. The calculations of treasury indexes and their components vary by the financial institution calculating the index.
Treasury Inflation Protected Securities - TIPS
A special type of Treasury note or bond that offers protection from inflation. Like other Treasuries, an inflation-indexed security pays interest every six months and pays the principal when the security matures. The difference is that the coupon payments and underlying principal are automatically increased to compensate for inflation as measured by the consumer price index (CPI). Also referred to as "Treasury inflation-indexed securities".

Treasury Investment Growth Receipts - TIGRs
Introduced by Merrill Lynch, TIGRs are stripped treasury securities offered at a significant discount to face value and backed by the U.S. Government.

Treasury Lock
A customized derivative security used by investors to lock in the yield or price of a treasury security.

Treasury Note
A marketable, U.S. government debt security with a fixed interest rate and a maturity between one and 10 years. T-notes can be bought either directly from the U.S. government or through a bank.
When buying from the government you can either put in a competitive or noncompetitive bid. With a competitive bid you specify the yield you want; however, this does not mean your bid will be approved. With a noncompetitive bid is one where you accept whatever yield is determined at auction.

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