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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

T

Takeover - The acquisition of control over a corporation by another company, which normally ousts the current management. The takeover can occur by means of a proxy fight or the acquisition of a controlling quantity of common stock.
Talisman - The Exchange's computerized settlement system.
Target Fund - A mutual fund containing bonds that mature in a single year, giving the entire fund a terminal maturity in that year.
Taxable Equivalent Yield - The interest rate which must be received on a taxable security to provide the holder the same after-tax return as that earned on a tax-exempt security.
Tax Anticipation Bill - Short-term security similar to a T bill that is accepted at par in payment of corporate federal taxes.
Tax Anticipation Note - A municipal note issued in anticipation of revenues from a future tax.
Tax Deferred - Earnings from an investment that are not taxed until an investor receives it.
Tax-Deferred Rollover - specific to Morgan Stanley Dean Witter Unit Investment Trusts. When duplicated stocks are exchanged from one unit trust to the next in the same series, only gains on those stocks sold from the terminating trust will be taxable.
Tax Exempt Bonds - Municipal securities (whose interest is free from federal income tax).
Tax-Exempt Commercial Paper - Short-term tax-free debt obligations issued on behalf of corporations backed by the issuing municipality.
Tax Form 1040 - Form U.S. residents use for filing federal income tax.
Tax Form 5329 - Form used to report any excise or additional income tax that is owed in connection with an IRA account and annuity.
Tax Form 8606 - Form investors use to report the amount of non-deductible contributions and the non-taxable part of distributions received from an IRA.
T-Bills (Treasury Bills) - Obligations issued by the Department of the Treasury maturing in 13, 26, or 52 weeks.
TD (Time Deposit) - Certificate of deposits or savings accounts that are held in a financial institution for a set amount of time. The funds cannot be withdrawn until the depositor gives the institution notice. Technically, certificates of deposit do not require any notification to withdraw as the date is set beforehand.
Technical Analysis - Technical analysts are often referred to as technicians or chartists. Chartists do not consider the fundamentals of a company; rather, they rely on studying the supply and demand for a company's stock. Chartists try to predict stock prices more for short or intermediate time periods. Chartists consider factors such as trading volume of a company's stock, historic highs and lows, closing prices of a company's stock over time and the shape of that graph, and other computer-generated charts.
Technical Research - Evaluation of the supply and demand for securities and commodities based on trading volume and price studies.
Tenants by Entirety - Form of ownership, usually between husband and wife, where the survivor takes all after the death of the other (right of survivorship) and neither party can affect lawfully the other party's interest.
Tenants in Common - A joint account in which the death of one of the owners would cause his/her share of the account to be retained by his/her estate.
Tender - An offer extended by a company to its shareholders to buy back its issued securities.
Tender of Certificate Shares - Preparation of certificate shares for deposit or redemption by the client, including his/her endorsement.
Tender Offer - The offer made by one company or individual for shares of another company. The offer may be in the form of cash or securities.
10K - An audited report of a corporation's year-end financial results and operations filed annually with the SEC. The report contains detailed information related to the company's financial condition, legal liabilities and plans for the upcoming year. Shareholders may obtain a free copy of this report from the corporation.
10Q - An unaudited financial report submitted on a quarterly basis to the SEC by any public companies whose securities are listed with the SEC. The report contains financial and other relevant information.
Termination Fee - The penalty paid to end a car lease before the agreed-upon date. Most car leases include termination fees, but they vary in size.
Term Life Insurance - Life insurance that provides coverage for a specified period of time.
Term Maturity - Bonds of an issue all mature on the same date.
Term Structure of Interest Rates - A graph representing the yield to maturity of Treasury securities at identified years of maturity.
Third Market - The buying and selling of exchange listed stocks in the over-the-counter market by non-exchange member brokers and institutional investors.
Third-Party Funds - Mutual funds administered and managed by companies other than CSIM, but that are still available to Schwab clients via the Mutual Fund Marketplace.
Tick - The downward or upward price movement in a security's transactions.
Ticker - A digital trading screen display showing information on the current option premiums, futures prices, and prices of the underlying assets as selected by the trader.
Ticker Symbol - Letters used in trading to identify a corporation's securities on the ticker tape.
Ticker Tape - System that produces a running report of trading activity on the stock exchanges.
Tick Indicator - A market indicator based on the number of stocks whose last trade was an uptick or a downtick. Used as an indicator of market sentiment or psychology to try to predict the market's trend.
Time Deposit - Bank account or CD containing a pledged balance at a stated rate for a specified period of time for which a stated rate of interest is paid.
Time Horizon (Investment Horizon) - The expected length of time an investor allows in order to meet financial goals.
Time Value - The portion of the premium that is based on the amount of time remaining until the expiration date of the option contract. The underlying components that determine the value of the option may change during that time. Time value is generally equal to the difference between the premium and the intrinsic value.
Tipping - Information passed by one person to another as a basis for buy or sell action in a security. Such information is presumed to be of material value and not available to the general public. The act of tipping can constitute a Rule 10b-5 insider trading violation on the part of both the tippor and the person receiving the tip who trades on the material non-public information.
Top-Down Approach - refers to an investment strategies used by portfolio managers that puts an emphasis first on the general trends of the economy and then chooses specific industries, or countries in the case of global or international funds, and then companies that can benefit from these trends.
Top-Down Investing - A management style that emphasizes the strength of various market sectors, industries or countries. Individual securities are then selected within the favored sectors.
Total Debt-to-Equity Ratio - A capitalization ratio comparing current liabilities plus long-term debt to shareholders' equity.
Total Return (bonds) - The annual rate of return on a bond, taking into account interest income plus appreciation or depreciation. If a bond is held to maturity, its total return equals its yield to maturity.
Total Return (stocks) - This measure of a trust’s performance encompasses all elements of return: dividends, capital gain distributions and changes in net asset value.
Total Revenue - Total sales and other revenue for a specific period.
Tracking Error - Tracking error measures the standard deviation of the excess returns of a composite compared to its benchmark. This gives an indication of the volatility of a portfolio versus its benchmark. It does not show whether or not the portfolio manager added value to the return of a portfolio versus that of the market.
Trade - A verbal (or electronic) transaction involving one party buying a security from another party. Once a trade is consummated, it is considered "done" or final. Settlement occurs one to five business days later.
Trade Confirmation - Written verification and information concerning a transaction that is sent to the customer on or before the first business day following the trade date.
Trade Date - The day a trade occurs.
Trading Area - A specific area of the trading floor of an exchange used to trade a specific option or security.
Trading Authorization - Written permission for one to trade in another’s account.
Trading Halt - A security that has temporarily stopped trading because of a major news announcement or an imbalance of orders to buy and sell.
Trading Range - The difference between the high and low prices traded during a period of time. With commodities, the high/low price limit established by the exchange for a specific commodity for any one day's trading.
Traditional IRA - A tax-deferred IRA that allows annual contributions of up to $2,000 for each income earner. Contributions are fully deductible for all individuals who are not active participants in employer-sponsored plans or for plan participants within certain income ranges.
Transfer - The process by which securities are reregistered to new owners. The old securities are canceled and new ones issued to the new registrants.
Transfer Agent - A commercial bank that retains the names and addresses of registered securities owners and that reregisters traded securities to the name of the new owners.
Transfer And Ship - A designation made to a client's account to denote that securities are to be registered in the client's name. The certificates are then mailed directly to the client at the address on record. This process normally takes two to six weeks. Upon receiving the certificate, the client must find a safe location to keep the certificates. If they are lost, stolen or damaged, it is the shareholder's responsibility to have the certificates replaced, which is a labor intensive process.
Treasuries - See U.S. Treasury Securities, U.S. Treasury Notes, U.S. Treasury Bonds, U.S. Treasury Bills.
Treasury Bills - Obligations issued by the Department of the Treasury maturing in 13, 26, or 52 weeks.
Treasury Bond - Long-term (10 to 30 years), fixed interest government debt security.
Treasury Direct - The program through which investors may purchase new issues of Treasury bills, notes, and bonds directly from the Federal Reserve.
Treasury Note - Medium-term (1 to 10 years), fixed interest government debt security.
Treasury Stock - Corporations sometimes find it desirable to reduce the number of shares in the hands of the investing public, and they do this by buying back their own stock (treasury stock). Generally, firms repurchase stock when they view it as a worthwhile or attractive investment. Treasury stock is retained by the corporation and can be used by it for mergers and acquisitions, to meet employee stock option plans, or as a way to pay stock dividends.
Triple Witching Hour - The last trading hour on the third Friday on which stock options, stock index options, and stock index futures all expire simultaneously. This occurs in the months of March, June, September and December. There may be a large amount of trading as traders and investors attempt to close their positions in the option and/or the underlying stock. This may create a volatile market.
Trustee - Person or organization appointed to manage the property according to the trust agreement.
Trust Indenture - Written agreement between a corporation and its debt issue holders stating interest rates, maturity dates, collateral, etc.
Turnover Rate - Volume of shares traded in a year as a percentage of total shares outstanding for an individual or professionally managed portfolio.
12b-1 Fee - An annual fee, expressed as a percentage of NAV, specifically designated for marketing expenses for a given mutual fund. This fee is included in the expense ratio.
12b-1 Mutual Fund - Fund which charges a fee to clients for some of its promotion expenses.
Two-Dollar Broker - An exchange member who executes orders from other member firms and charges a fee for each execution.
Type - The classification of an option contract as either a put or a call.