| Term | Definition |
|---|---|
| T+1 (T+2, T+3) | The number of business days after a trade date by which settlement must occur |
| T Distribution | A probability distribution similar to the normal distribution |
| T-Account | An accounting tool used to show debits and credits |
| T-Test | A statistical test |
| Tactical Asset Allocation (TAA) | An investment strategy that involves actively adjusting a portfolio’s asset allocation |
| Taft-Hartley Act | A U.S. law related to labor unions |
| Tag-Along Rights | Rights that allow minority shareholders to participate in a sale of control |
| Taguchi Method of Quality Control | A quality control methodology |
| Tail Risk | The risk of rare but extreme events |
| Takaful | Islamic insurance |
| Take-Home Pay | Net pay after deductions |
| Take or Pay | A contractual obligation to pay even if delivery is not taken |
| Take-Out Loan | A long-term loan that replaces a short-term loan |
| Take-Profit Order (T/P) | An order to sell a security when it reaches a certain price |
| Takeover | The acquisition of control of a company |
| Tangible Asset | A physical asset |
| Tangible Book Value Per Share (TBVPS) | A measure of a company’s net worth |
| Tangible Common Equity (TCE) | A measure of a bank’s capital |
| Tangible Net Worth | A measure of a company’s net worth |
| Tangible Personal Property | Physical property that is not real estate |
| Tape Reading | A technical analysis technique |
| Taper Tantrum | A market reaction to the Federal Reserve reducing its asset purchases |
| Tapering | The gradual reduction of asset purchases by a central bank |
| Target-Date Fund (TDF) | A mutual fund designed for investors with a specific retirement date |
| Target Markets | The specific group of consumers a company aims to reach |
| Targeted Accrual Redemption Note (TARN) | A type of bond |
| Tariff | A tax on imports or exports |
| Tax Accounting | Accounting for tax purposes |
| Tax-Advantaged | Providing tax benefits |
| Tax Avoidance | Legal use of tax laws to reduce taxes |
| Tax Base | The total amount of income or property subject to tax |
| Tax Benefit | A reduction in taxes |
| Tax Brackets | Income ranges with different tax rates |
| Tax Break | A tax benefit |
| Tax Credit | A direct reduction in taxes owed |
| Tax-Deductible Interest | Interest that can be deducted from taxable income |
| Tax Deduction | A reduction in taxable income |
| Tax Deed | A deed to property for which taxes are owed |
| Tax Deferred | Postponement of taxes |
| Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) | A U.S. tax law |
| Tax-Equivalent Yield | The yield on a tax-exempt bond expressed as a taxable yield |
| Tax Evasion | Illegal non-payment of taxes |
| Tax Exempt | Not subject to tax |
| Tax-Exempt Interest | Interest that is not subject to tax |
| Tax Expense | The amount of taxes owed |
| Tax Fraud | Illegal activity to avoid paying taxes |
| Tax Free | Not subject to tax |
| Tax-Free Savings Account (TFSA) | A type of savings account in Canada |
| Tax Haven | A country with low or no taxes |
| Tax Holiday | A temporary exemption from taxes |
| Tax Identification Number (TIN) | A number used to identify taxpayers |
| Tax Incidence | The distribution of the tax burden |
| Tax Liability | The amount of taxes owed |
| Tax Lien | A claim on property for unpaid taxes |
| Tax Lien Certificate | A certificate representing a tax lien |
| Tax Loss Carryforward | The ability to use losses to offset future gains |
| Tax Loss Harvesting | Selling assets to realize losses for tax purposes |
| Tax Planning | The process of minimizing taxes |
| Tax Rate | The percentage of income or property that is taxed |
| Tax Reform Act of 1986 | A U.S. tax law |
| Tax Refund | A repayment of overpaid taxes |
| Tax Relief | A reduction in taxes |
| Tax Return | A form filed with the tax authorities |
| Tax Season | The time of year when taxes are due |
| Tax Selling | Selling assets to minimize taxes |
| Tax Shelter | An investment that reduces taxes |
| Tax-Sheltered Annuity | A type of retirement plan |
| Tax Shield | The reduction in taxes due to a deduction or credit |
| Tax Table | A table used to calculate taxes |
| Tax-to-GDP Ratio | The ratio of tax revenue to GDP |
| Tax Treaty | An agreement between countries regarding taxes |
| Tax Wedge | The difference between the pre-tax and after-tax return on an investment |
| Taxable Income | Income that is subject to tax |
| Taxable Wage Base | The maximum amount of wages subject to Social Security tax |
| Taxation | The process of levying taxes |
| Taxation Without Representation | The idea that it is unfair to be taxed without having a say in the government |
| Taxes | Mandatory payments to the government |
| Taxpayer | A person who pays taxes |
| Taxpayer Identification Number (TIN) | Same as Tax Identification Number |
| Taylor’s Rule | A monetary policy guideline |
| Teacher Retirement System (TRS) | A retirement plan for teachers |
| Teachers Insurance and Annuity Association (TIAA) | A financial services organization |
| Technical Analysis | A method of analyzing securities based on price and volume data |
| Technical Analysis of Stocks and Trends | A book on technical analysis |
| Technical Analyst | A person who uses technical analysis |
| Technical Indicator | A tool used in technical analysis |
| Technical Job Skills | Skills related to a specific job |
| Technical Skills | Skills related to a specific field |
| Technocracy | Government by technical experts |
| Technology, Media, and Telecom Sector (TMT) | A sector of the economy |
| Technology Sector | A sector of the economy |
| Ted Spread | The difference between the interest rates on Treasury bills and LIBOR |
| Telegraphic Transfers (TT) | Electronic funds transfers |
| Temporal Method | An accounting method |
| Tenancy at Sufferance | A type of tenancy |
| Tenancy-at-Will | A type of tenancy |
| Tenancy by the Entirety | A type of joint ownership |
| Tenancy in Common (TIC) | A type of joint ownership |
| Tenants by Entirety (TBE) | Same as Tenancy by the Entirety |
| Tender | An offer to buy securities |
| Tender Offer | A public offer to buy shares of a company |
| Tenkan-Sen (Conversion Line) | A technical indicator |
| Tenor | The length of time until a bond matures |
| Term Deposit | A bank deposit held for a fixed period |
| Term Life Insurance | Life insurance that provides coverage for a specific term |
| Term Loan | A loan with a fixed term |
| Term Sheet | A preliminary agreement |
| Term Structure of Interest Rates | The relationship between interest rates and maturity |
| Term to Maturity | The length of time until a bond matures |
| Terminal Capitalization Rate | A capitalization rate used to value future cash flows |
| Terminal Value (TV) | The value of a business or asset beyond a certain point |
| Termination of Employment | The end of an employment relationship |
| Terms of Employment | The conditions of employment |
| Terms of Trade (TOT) | The ratio of export prices to import prices |
| Tertiary Industry | The service sector |
| Testamentary Trust | A trust that takes effect upon death |
| Tether (USDT) | A stablecoin |
| Texas Ratio | A measure of bank health |
| Tezos | A cryptocurrency platform |
| The Greatest Generation | A term used to describe the generation that fought in World War II |
| Theoretical Ex-Rights Price (TERP) | The price of a share after a rights offering |
| Theoretical Value (Of a Right) | The value of a right |
| Theory of Price | A theory about how prices are determined |
| Theory of the Firm | A theory about how firms operate |
| There Ain’t No Such Thing as a Free Lunch (TANSTAAFL) | An economic principle |
| Theta | A measure of an option’s sensitivity to time decay |
| Third Party | A person or entity other than the two main parties involved in a transaction |
| Third-Party Insurance | Insurance that covers damage caused to a third party |
| Third-Party Transactions | Transactions involving a third party |
| Third World | A term used to describe developing countries |
| Thomas Malthus | An economist |
| Three Black Crows | A candlestick pattern |
| Three-Sigma Limits | A statistical measure |
| Three White Soldiers Candlestick Pattern | A candlestick pattern |
| Thrift Association | A type of financial institution |
| Thrift Bank | Same as Thrift Association |
| Thrift Savings Plan (TSP) | A retirement plan for federal employees |
| Throughput | The amount of work that can be done in a given time |
| Tick | The minimum price movement |
| Term | Definition |
|---|---|
| Tick Size | The minimum price movement of a security |
| Ticker Symbol | A code used to identify a stock |
| Tier 1 Capital | A measure of a bank’s core capital |
| Tier 1 Capital Ratio | A measure of a bank’s financial strength |
| Tier 1 Common Capital Ratio | A measure of a bank’s core equity capital |
| Tier 1 Leverage Ratio | A measure of a bank’s leverage |
| Tier 2 Capital | A measure of a bank’s supplementary capital |
| Tight Monetary Policy | A monetary policy that aims to reduce inflation |
| Timber Investment Management Organization (TIMO) | A company that manages timberland investments |
| Time Decay | The decrease in the value of an option over time |
| Time Deposit | A bank deposit held for a fixed period |
| Time Horizon | The length of time an investment is expected to be held |
| Time in Force | The length of time an order remains active |
| Times Interest Earned (TIE) | A measure of a company’s ability to meet its interest obligations |
| Time Series | A sequence of data points collected over time |
| Time Value | The value of money over time |
| Time Value of Money (TVM) | The concept that money available at the present time is worth more than the identical sum in the future due to its potential1 earning capacity |
| Time-Weighted2 Rate of Return (TWR) | A method of calculating investment returns |
| Times-Revenue Method | A valuation method |
| TINA (There is No Alternative) | A market sentiment indicator |
| Tit for Tat | A game theory strategy |
| Title Insurance | Insurance that protects against defects in a property’s title |
| Title Search | An examination of public records to determine the ownership of property |
| To Be Announced (TBA) | A type of mortgage-backed security |
| Tobacco Tax/Cigarette Tax | A tax on tobacco products |
| Tobin Tax | A tax on financial transactions |
| Tokyo Price Index (TOPIX) | A stock market index in Japan |
| Tombstone | An advertisement for a securities offering |
| Tomorrow Next (Tom Next) | A foreign exchange transaction |
| Tontine | A financial arrangement where payouts increase over time |
| Too Big to Fail | A financial institution whose failure would have systemic consequences |
| Top Line | Revenue |
| Top-Down Analysis | An investment strategy that starts with the overall economy |
| Top-Down Investing | Same as Top-Down Analysis |
| Toronto Stock Exchange (TSX) | A stock exchange in Canada |
| Tort Law | A area of law related to civil wrongs |
| Total Bond Fund | A mutual fund that invests in a variety of bonds |
| Total Cost of Ownership (TCO) | The total cost of owning an asset |
| Total Debt Service Ratio | A measure of a borrower’s ability to repay debt |
| Total Debt-to-Capitalization | A measure of a company’s financial leverage |
| Total-Debt-to-Total-Assets | Same as Total Debt-to-Capitalization |
| Total Enterprise Value (TEV) | The total value of a company |
| Total Expense Ratio (TER) | The annual fee charged by a mutual fund |
| Total Liabilities | A company’s total debt |
| Total Quality Management (TQM) | A management philosophy focused on quality |
| Total Return | The total gain or loss on an investment |
| Total Return Index | A stock market index that includes dividends |
| Total Return Swap | A swap where one party pays the total return of an asset |
| Total Shareholder Return (TSR) | The total return to shareholders |
| Total Utility | The total satisfaction derived from consuming a good or service |
| Tracker Fund | An investment fund that tracks a market index |
| Tracking Error | The difference between a tracker fund’s performance and the index it tracks |
| Tracking Stock | A type of stock that tracks a specific business unit |
| Trade | The exchange of goods or services |
| Trade Credit | Credit extended to businesses by their suppliers |
| Trade Deficit | A situation where a country imports more than it exports |
| Trade Finance | Financing related to international trade |
| Trade Liberalization | The reduction of trade barriers |
| Trade Line | A credit account |
| Trade Sanction | Restrictions on trade |
| Trade Secret | Confidential information that gives a business a competitive advantage |
| Trade Signal | A signal used by traders |
| Trade Surplus | A situation where a country exports more than it imports |
| Trade War | A situation where countries impose tariffs on each other |
| Trademark | A symbol or name that is legally protected |
| Trader | A person who buys and sells securities |
| Trading Account | A brokerage account used for trading |
| Trading Book | A financial institution’s portfolio of trading assets |
| Trading Desk | A department within a financial institution that handles trading |
| Trading Halt | A temporary suspension of trading |
| Trading House | A company that engages in international trade |
| Trading Platform | A software platform used for trading |
| Trading Strategy | A plan for trading securities |
| Trading Session | The period during which trading occurs |
| Traditional IRA | A type of retirement account |
| Tragedy of the Commons | A situation where a shared resource is overused |
| Trailing 12 Months | A period of the previous 12 months |
| Trailing Price-to-Earnings (Trailing P/E) | A valuation metric |
| Trailing Stop | A type of stop order |
| Tranches | Different classes of securities in a securitization |
| Transaction | An exchange of goods or services |
| Transaction Costs | The costs associated with making a transaction |
| Transaction Exposure | The risk of currency fluctuations affecting a transaction |
| Transaction Fees | Fees charged for transactions |
| Transfer Agent | A company that maintains records of stock ownership |
| Transfer of Risk | The shifting of risk from one party to another |
| Transfer on Death (TOD) | A designation on an account that allows assets to be transferred upon death |
| Transfer Payment | A payment made without an exchange of goods or services |
| Transfer Price | The price at which goods or services are transferred between related entities |
| Transfer Pricing | The setting of transfer prices |
| Transfer Tax | A tax on the transfer of property |
| Transferable Letters of Credit | Letters of credit that can be transferred |
| Translation Exposure | The risk of currency fluctuations affecting financial statements |
| Transparency | The availability of information |
| Transportation Sector | A sector of the economy |
| Transposition Error | A type of error |
| Traunch | Same as Tranche |
| Travel Expenses | Expenses incurred while traveling |
| Travel Insurance | Insurance that covers travel-related risks |
| Traveler’s Check | A pre-printed check used by travelers |
| Treasury Bills (T-Bills) | Short-term government securities |
| Treasury Bond (T-Bond) | Long-term government securities |
| Treasury Direct | A website for buying Treasury securities |
| Treasury Inflation-Protected Security (TIPS) | A type of government security that is indexed to inflation |
| Treasury Notes | Medium-term government securities |
| Treasury Stock (Treasury Shares) | A company’s own stock that it has repurchased |
| Treasury Stock Method | A method of calculating diluted earnings per share |
| Treasury STRIPS | A type of Treasury security |
| Treasury Yield | The yield on a Treasury security |
| Treaty Reinsurance | Reinsurance that is based on a treaty |
| Trend | The general direction of a market or security |
| Trend Analysis | The process of identifying trends |
| Trend Trading | A trading strategy that follows trends |
| Trendline | A line drawn on a chart to indicate a trend |
| Treynor Ratio | A measure of risk-adjusted return |
| Trial Balance | A list of all account balances |
| Triangle | A chart pattern |
| Triangular Arbitrage | A type of arbitrage |
| Trickle-Down Theory | An economic theory |
| Triggering Event | An event that triggers a specific action |
| Trilemma | A situation with three difficult choices |
| Trillion Cubic Feet (Tcf) | A unit of measurement for natural gas |
| Trimmed Mean | A statistical measure |
| Triple Bottom | A chart pattern |
| Triple Bottom Line (TBL) | A framework for measuring corporate performance |
| Triple Exponential Moving Average (TEMA) | A technical indicator |
| Triple Net Lease (NNN) | A type of lease |
| Triple Top | A chart pattern |
| Triple Witching | The simultaneous expiration of three types of options and futures contracts |
| Troubled Asset Relief Program (TARP) | A U.S. government program |
| Trough | The lowest point of a business cycle |
| Troy Ounce | A unit of measurement for precious metals |
| True Strength Index (TSI) | A technical indicator |
| Trust | A legal arrangement where assets are held for the benefit of another |
| Trust Company | A company that manages trusts |
| Trust Deed | A document that creates a trust |
| Trust Fund | A fund held in trust |
| Trust Indenture | A contract between a bond issuer and a trustee |
| Term | Definition |
|---|---|
| Trust Receipts | Documents acknowledging possession of goods held in trust |
| Trustee | A person who manages a trust |
| Truth in Lending Act (TILA) | A U.S. law that requires lenders to disclose the terms of loans |
| TSA PreCheck | A U.S. government program that allows expedited security screening |
| Turnaround | A recovery from poor performance |
| Turnkey Asset Management Program (TAMP) | A program that provides investment management services to financial advisors |
| Turnkey Business | A business that is ready to operate |
| Turnkey Property | A property that is ready to occupy |
| Turnkey Solution | A complete solution that is ready to use |
| Turnover | The rate at which employees leave a company |
| Turnover Ratio | A measure of how quickly assets are sold |
| Tweezer | A candlestick pattern |
| Twenty Eight Thirty Six Rule (28/36 Rule) | A personal finance guideline |
| Two and Twenty | A hedge fund fee structure |
| Two-Bin Inventory Control | An inventory management system |
| Two-Tailed Tests | A statistical test |
| Two-Way ANOVA | A statistical test |
| Tying | The practice of requiring a customer to buy one product in order to buy another |
| Type I Error | A false positive |
| Type II Errors | A false negative |
| tZero | A blockchain-based securities trading platform |