Financial glossary

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Tabulation Report
A proxy tally report detailing the current quorum and vote figures on each proposal. Financial glossary.

Tactical Asset Allocation
Portfolio strategy that allows active departures from the normal asset mix according to specified objective measures of value. Often called active management. It involves forecasting asset returns, volatilities and correlations. The forecasted variables may be functions of fundamental variables, economic variables or even technical variables.

Tail
The remaining reserves after a project financing has been repaid. Sometimes refers to the residual value.

Tailgating
Purchase of a security by a broker after the broker places an order for the same security for a customer. The broker hopes to profit either because of information which the customer has or because the customer's purchase is of sufficient size to affect security prices. This is an unethical practice. Financial glossary.

Take
(a) To agree to buy. A dealer or customer who agrees to buy at another dealer's offered price is said to take the offer. (b) Euro bankers speak of taking deposits rather than buying money.

Take a bath
To sustain a loss on either a speculation or an investment. Financial glossary.

Take a flier
To speculate on highly risky securities.

"Take it down"
Reduce the offering price or hit others' bids to such an extent as to lower the inside market.

"Take me along"
"Allow me to participate in the side of a particular trade.

Take off
A sharp increase in the price of a stock, or a positive movement of the market as a whole.

Take-out
A cash surplus generated by the sale of one block of securities and the purchase of another, e.g. selling a block of bonds at 99 and buying another block at 95. Also, a bid made to a seller of a security that is designed  to take the seller out of the market. Financial glossary.

Take-and-pay contract
An agreement that obligates the purchaser to take any product that is offered  and pay a specified amount if the product is not taken.

Take a position
To buy or sell short; that is to own or to owe some amount on an asset or derivative security.

Take a powder
Temporarily cancel an order or indication in a stock, while unrepresented interest still exists.

Take a swing
Execute a trade at a price that the trader feels is higher or more risky than would normally be acceptable, in order to gain market share in the institutional arena. Financial glossary.

Takedown
The share of securities of each participating investment banker in a new or a secondary offering or the price at which the securities are distributed to the different members of an underwriting group.

Takeout
A financing to refinance or take out another loan.

Takeover
General term referring to transfer of control of a firm from one group of shareholders to another group of shareholders. Change in the controlling interest of a corporation, either through a friendly acquisition or an unfriendly, hostile bid. A hostile takeover (with the aim of replacing current existing management) is usually attempted through a publictender offer. Financial glossary.

Takeover target
A company that is the object of a takeover attempt, friendly or hostile.

Take-up fee
A fee paid to an underwriter in connection with an underwritten rights offering or an underwritten forced conversion. Represents compensation for each share of common stock the underwriter obtains and must resell upon the exercise of rights or conversion of bonds.

Takes a call
Requires a phone call to an account in order for a trade to be completed.

Takes price
Requiring some price movement or concession on behalf of the initiating party before a trade can be consummated.  Financial glossary.

Taking delivery
When the buyer actually assumes possession from a seller of assets agreed upon in a forward contract or a futures contract.

Taking a view
A London expression; means forming an opinion as to where market prices are headed and acting on it. Financial glossary.

Tandem programs
Ginnie Mae mortgage funds provided at below-market rates to residential MBS buyers with FHA Section 203 and 235 loans and to developers of multifamily projects with Section 236 loans initially and later with Section 221(d)(4) loans.

Tangible asset
An asset whose value depends on particular physical properties. These include reproducible assets such as buildings or machinery and non reproducible assets such as land, a mine or a work of art.  Financial glossary.

Tangible net worth
Total assets minus intangible assets, which include patents and copyrights and total liabilities.

Tangibility
Characteristic that an assets can be used as collateral to secure debt.

Tape
(a) Service that reports prices and sizes of transactions on major exchanges-ticker tape. (b) Dow Jones and other news wires.

Tape is late
When the trading volume is so heavy that trades appear on the tape more than a minute behind the timer they actually take place.

Tare Weight
The weight of an empty container and any packaging materials used in the container. Financial glossary.

Tariff
A tax on imports or exports.

Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the opportunity costs of holding too much cash and the trading costs of holding too little cash.

Target company
Often used in risk arbitrage. Firm chosen as an attractive takeover candidate by a potential acquirer. The acquirer may buy up to 5% of the target's stock without public disclosure, but it must report all transactions and supply other information to the SEC, the exchange the target company is listed on and the target company itself once the 5% threshold is hit.  Financial glossary.

Target firm
A firm that is the object of a takeover by another firm.

Target investment mix
The percentage mix of stocks, bonds and short-termreserves that an investor considers appropriate based on his/her personal objectives, time horizon, risk tolerance and financial resources.

Target Leverage Ratio
The ratio of the market value of debt to the total market value of the firm that management seeks to maintain.

Target payout ratio
A firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a certain percentage of earnings, but it pays a stated dollar dividend and adjusts it to the target as base line increases in earnings occur. Financial glossary.

Target price
-In the context of takeovers, the price at which an acquirer aims to buy a target firm.
-In the context of options, the price of the underlying security at which an option will become in the money.
-In the context of stocks, the price that an investor hopes a stock will reach in a certain time period.

Target zone arrangement
A monetary system under which countries pledge to maintain their exchange rates within a specific margin around agreed-upon, fixed central exchange rates.

Target zones
Implicit boundaries on exchange rates established by central banks.

Targeted registered offerings
Securities issues sold to "targeted" foreign financial institutions according to U.S. Securities and Exchange Commission guidelines. These foreign institutions then maintain a secondary market in the foreign market. Financial glossary.

Targeted repurchase
Buying back of a firm's stock from a potential acquirer, usually at a substantial premium, to forestall a takeover attempt.

Targeted Amortization Class bonds
Bonds offered as a trancheclass of some CMOs, according to a sinking fund schedule. They differ from PAC bonds whose amortization is guaranteed as long as prepayments on the underlying mortgages do not exceed certain limits. A TAC's schedule is met at only one prepayment rate. Financial glossary.

Tax anticipation bills (Tabs)
Special bills that the Treasury occasionally issues that mature on corporate quarterly income tax dates and can be used at face value by corporations to pay their tax liabilities.

Tax Anticipation Notes (Tans)
Notes issued by states or municipalities to finance current operations in anticipation of future tax receipts.

Tax arbitrage
Trading that takes advantage of a difference in tax rates or tax systems as the basis for profit.

Tax audit
Audit by the IRS or other tax-collecting agency to determine whether a taxpayer has paid the correct amount of tax. Financial glossary.

Tax avoidance
Minimizing tax burden through legal means such as tax-free municipal bonds, tax shelters, IRA accounts and trusts.

Tax base
The assessed value of the taxable property, assets and income within a specific geographic area.

Tax basis
In the context of finance, the original cost of an asset less depreciation that is used to determine gains or losses for tax purposes.
In the context of investments, the price of a stock or bond plus the broker's commission.

Tax books
Records kept by a firm's management that follow IRS rules. The books follow Financial Accounting Standards Board rules. Financial glossary.

Tax bracket
The percentage of tax obligation for a particular taxable income.

Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously realized project-related tax benefits not already clawed back. Exercised to the extent required to cover any cash deficiency of the project.

Tax clientele
Categories of investors who have specific preferences for debt or equity because of differences in their personal tax rates.

Tax credit
A direct dollar-for-dollar reduction in tax allowed for expenses such as child care and R&D for building low-income housing.

Tax-deductible
The effect of creating a tax deduction, such as charitable contributions and mortgage interest. Financial glossary.

Tax deduction
An expense that a taxpayer is allowed to deduct from taxable income.

Tax-deferred income
Dividends, interest and unrealized capital gains on investments in an account such as a qualified retirement plan, where income is not subject to taxation until a withdrawal is made.

Tax deferral option
Allowing the capital gains tax on an asset to be payable only when the gain is realized by selling the asset. Financial glossary.

Tax-deferred retirement plans
Employer-sponsored and other plans that allow contributions and earnings to be made and accumulate tax-free until they are paid out as benefits.

Tax differential view (of dividend policy)
The view that shareholders prefer capital gains over dividends and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends.

Tax-equivalent yield
The pre-tax yield required from a taxable bond in order to equal the tax-free yield of a municipal bond.

Tax evasion
Illegal by reducing tax burden by under reporting income, overstating deductions or using illegal tax shelters. Financial glossary.

Tax exempt bond
A bond usually issued by municipal, county or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax.

Tax exempt income
Dividends and interest not subject to federal and, in some cases, state and local income taxes. Financial glossary.

Tax exempt income fund
A mutual fund that seeks income that is exempt from federal and, in some cases, state and local income taxes.

Tax exempt money market fund
A money market fund that invests in short-term tax exempt municipal securities.

Tax exempt sector
The municipal bond market where state and local governments raise funds. Bonds issued in this sector are exempt from federal income taxes.

Tax exempt security
An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town or any political district. Financial glossary.

Tax free acquisition
A merger or consolidation in which (a) the acquirer's tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree's and (b) each seller who receives only stock does not have to pay any tax on the gain realized until the shares are sold. Financial glossary.

Tax haven
A nation with a moderate level of taxation and/or liberal tax incentives for undertaking specific activities such as exporting or investing.

Tax haven affiliate
A wholly owned entity in a low tax jurisdiction that is used to channel funds to and from a multinational's foreign operations. The tax benefits of tax haven affiliates were largely removed in the US by the Tax Reform Act of 1986.

Tax holiday
A reduced tax rate that a government provides as an inducement to foreign direct investment. Financial glossary.

Tax liability
The amount in taxes a taxpayer to the government.

Tax lien
The right of the government to enforce a claim against the property of a person owing taxes.

Tax and loan account
An account at a private bank, held in the name of the district Federal Reserve Bank, which holds operating cash for the business of the US Treasury.

Tax loss carryback, carryforward
A tax benefit that allows business losses to be used to reduce tax liability in previous and or following years.

Tax neutrality
Characteristic that taxes do not interfere with the natural flow of capital toward its most productive use.

Tax planning
Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. Financial glossary.

Tax preference item
Items that must be included when calculating the alternative minimum tax.

Tax preparation services
Firm that prepare tax returns for a fee.

Tax rate
The percentage of tax paid for different levels of income.

Tax Reduction Strategy
A source of competitive advantage that depends on differences in the tax rates imposed in different locations. Financial glossary.

Tax Reform Act of 1976
Legislation aimed at tightening provisions relating to taxation, including changes in the capital gains tax laws.

Tax Reform Act of 1984
Legislation enacted as part of the Deficit Reduction Act of 1984 to reduce the federal budget deficit. Among its provisions are a decrease in the minimum holding period for assets to qualify for long term capital gains treatment from one year to six months. Financial glossary.

Tax refund
Money back from the government when too much tax has been paid or withheld from a salary.

Tax schedules
Tax forms used to report itemized deductions, dividend and interest income, profit or loss from a business, capital gains and losses, supplemental income and loss and self-employment tax.

Tax selling
Selling of securities to realize losses that will offset capital gains and reduce tax liability.

Tax shelter
Legal methods taxpayers can use to reduce tax liabilities. An example is the use of depreciation of assets.

Tax-sheltered annuity
A type of retirement plan under Section 403(b) of the Internal Revenue Code that permits employees of public educational organizations or tax-exempt organizations to make before-tax contributions via a salary reduction agreement to a tax sheltered retirement plan. Employers are also allowed to make direct contributions on behalf of employees. Financial glossary.

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

Tax software
Computer software designed to assist taxpayers in filling out tax returns and minimizing tax liability. Financial glossary.

Tax status election
The decision of the status under which to file a tax return. For example, a corporation may file as a C corporation or an S corporation.

Tax straddle
Technique used in futures and options trading to create tax benefits. For example, an investor with a capital gain takes a position creating an artificial offsetting loss in the current tax year and postponing a gain from the position until the next tax year.

Tax swap
Swapping two similar bonds to receive a tax benefit.

Tax-timing option
The option to sell an asset and claim a loss for tax purposes or not sell the asset and defer the capital gains tax.

Tax umbrella
Tax loss carry forwards from previous business losses that form a tax shelter for profits earned in current and future years. Financial glossary.

Taxpayer Relief Act of 1997
Legislation forming part of a larger act designed to balance the federal budget. Some of the legislation's provisions included tax credits for taxpayers supporting children, an increase in the amount that could be excluded from estate taxes and a lower capital gains tax rate. Financial glossary.

Taxable acquisition
A merger or consolidation that is not a acquisition. The selling shareholders are treated as having sold their shares.

Taxable equivalent yield
The return from a higher-paying but taxable investment that would equal the return from a tax-free investment. This depends on the investor's tax bracket.

Taxable estate
That portion of a deceased person's estate that is subject to transfer tax.

Taxable event
An event or transaction that has a tax consequence, such as the sale of stock holding that is subject to capital gains taxes. Financial glossary.

Taxable income
Gross income less a variety of deductions.

Taxable municipal bond
Taxed private purpose bonds issued by the state or local government to finance prohibited projects such as sports stadiums.

Taxable transaction
Any transaction that is not tax free to the parties involved, such as a taxable acquisition.

Taxable year
The 12-month period an individual uses to report income for income tax purposes. For most individuals, their tax year is the calendar year.

Tear sheet
A page from an S&Pstock that provides information on thousands of stocks, often sent to prospective purchasers.

Teaser rate
A low initial interest rate on an adjustable rate mortgage to entice borrowers, that is later eliminated and replaced by a market level rate. Financial glossary.

Technical analysis
Security analysis that seeks to detect and interpret patterns in past security prices.

Technical analysts
Also called chartists or technicians, analysts who use mechanical rules to detect changes in the supply of and demand for a stock and to capitalize on the expected change.

Technical condition of a market
Demand and supply factors affecting price, in particular the net position, either long or short, of the dealer community.

Technical descriptors
Variables that are used to describe the market in terms of patterns in historical data.

Technical forecasting
A forecasting method that uses historical prices and trends.

Technical Information
Information related to the momentum of a particular variable. In market analysis, technical information is information related to market dynamics and crowd behavior only.

Technical insolvency
Default on a legal obligation of the firm. Technical insolvency occurs when a firm doesn't pay a bill on time. Financial glossary.

Technical rally
Short rise in securities or commodities futures prices in the face of a general declining trend. Such a rally may result because investors are bargain hunting or because analysts have noticed a particular support level at which securities usually bounce up.

Technical sign
A short-termtrend in the price movement of a security that analysts recognize as significant.

TED spread
Difference between US Treasury bill rate and Eurodollar rate; used by some traders as a measure of investor/trader anxiety or credit quality. Financial glossary.

Teeny
1/16 or 0.0625 of one full point in price. Steenth.

Telephone switching
Moving one's assets from one mutual fund or variable annuity to another by telephone.

Temporal method
A currency translation method under which the choice of exchange rate depends on the underlying method of valuation. Assets and liabilities valued at historical cost (marketcost) are translated at the historical (current market) rate.

Temporary Assets
That portion of a firm'scurrent assets that fluctuates in response to seasonal or anticipated short-term.

Temporary Financing
The sum of negotiated current liabilities and temporary spontaneous current liabilities.

Temporary investment
A short term investment, such as a money market fund, Treasury bills or short-term CD, which is usually held a year or less. Financial glossary.

Ten largest holdings
The percentage of a portfolio's total net assets or equity holdings in its ten largest securities positions. As this percentage rises, a portfolio's returns are likely to be more volatile because they are more dependent on the fortunes of fewer companies.

10% guideline
The standard analysts' principle that funded debt over 10% of the assessed valuation of taxable property for a municipality is excessive.

10-K
Annual report required by the SEC each year. Provides a comprehensive overview of a company's state of business. Must be filed within 90 days after fiscal year-end. A 10-Q report is filed quarterly. Financial glossary.

10-Q
Quarterly report required by the SEC each quarter. Provides a comprehensive overview of a company's state of business.

1040 form
The standard individual tax return form of the IRS.

1099
A statement sent to the IRS and taxpayers by the payers of dividends and interest and by issuers of taxable original issue discount securities.

1099 B
The tax statement used for reporting proceeds resulting from the sale, redemption or liquidation of shares. Financial glossary.

1099 DIV
The tax statement used for reporting dividends paid to registered shareholders.

Ten-Day Rule
The New York Stock Exchange rule permitting member firms (brokers) to vote in favor of management ten days or less before the meeting, provided that the member firm mailed proxy material to beneficial owners at least 15 business days before the meeting. The rule allows many shares to be voted, which would otherwise not be, to reach a quorum, approve the choice of directors and auditors and handle other routine matters. This rule does not apply to banks, their nominees or their depository positions, nor to non-routine proposals such as approval for the corporation to issue more shares. Financial glossary.

Tenant
A partial owner of a security or the holder of some property.

Tenants by Entireties
Joint ownership of property or securities by a husband and wife where, upon the death of one, the property goes to the survivor.

Tenants in common
Account registration in which two or more individuals own a certain proportion of an account. Each tenant's proportion is distributable as part of the owners estate, so that if one of the account holders dies, that owner's heirs are entitled to that proportional share of the account. Financial glossary.

Tenbagger
A stock that grows in value ten fold.

Tender
To offer for delivery against futures.

Tender offer
General offer made publicly and directly to a firm's share holders to buy their stock at a price well above the current value market price. Financial glossary.

Tender offer premium
The premium offered above the current market price in a tender offer.

Tenor
The length of time until a loan is due. For example, a loan is taken out with a two year tenor. After one year passes, the tenor of the loan is one year.

Term
The period of time during which a contract is in force.

Term bonds
Bonds whose principal is payable at maturity. Often referred to as bullet maturity bonds or simply bullet bonds.  Financial glossary.

Term certificate
A certificate of deposit with a longer time to maturity.

Term Fed funds
Fed funds sold for a period of time longer than overnight.

Term insurance
Provides a death benefit only, no build up of cash value.

Term life insurance
A contract that provides a death benefit but no cash build up or investment component. The premium remains constant only for a specified term of years and the policy is usually renewable at the end of each term. Financial glossary.

Term loan
A bank loan, typically with a floating interest rate, for a specified amount that matures in between one and ten years and requires a specified repayment schedule.

Term to maturity
The time remaining on a bond's life or the date on which the debt will cease to exist and the borrower will have completely paid off the amount borrowed.

Term premiums
Excess of the yields to maturity on long term bonds over those of short term bonds.

Term repo
A repurchase agreement with a term of more than one day.

Term structure of interest rates
Relationship between interest rates on bonds of different maturities, usually depicted in the form of a graph often called a yield curve. Harvey shows that inverted term structures (long rates below short rates) have preceded every recession over the past 30 years. Financial glossary.

Term trust
A closed end fund that has a fixed termination or maturity date.

Terminal value
The value of a bond at maturity, typically its par value or the value of an asset (or an entire firm) on some specified future valuation date. Usually, a perpetuity formula is used. For example, suppose we forecast cash flows through year 10. We make an assumption that year 11 and beyond will be no growth (except for inflation). If the cash flow forecast for year 11 is 100, the firm's discount rate is 12% and inflation is expected to be 2%, we use the formula V10 = CF11/(disc rate-inflation). Hence, the value is 100/(0.12 - 0.02) that is 1,000. This cash flow needs to be brought back to present value using the formula 1000/(1.12)10, which is 321.97. Note the importance of the inflation assumption. Financial glossary.

Terms of Delivery
The part of a sales contract that indicates the point at which title and risk of loss of merchandise pass from the seller to the buyer.

Terms of sale
Conditions under which a firm proposes to sell its goods or services for cash or credit. Financial glossary.

Terms of trade
The weighted average of a nation's export prices relative to its import prices.

Test
The event of a price movement that approaches a support level or a resistance level established earlier by the market. A test is passed if prices do not go below the support or resistance level and the test is failed if prices go on to new lows or highs. Financial glossary.

Testamentary trust
A trust created by a will, that is scheduled to occur after the maker's death.

The Curb
Another name for the American Stock Exchange.

The Desk
The trading desk at the Federal REserve Bank of New York through which open market purchases and sales of government and federal agancy securities are made. The desk maintains direct telephone communication with major government securities dealers. A "foreign desk" at the Federal Reserve Bank of New York conducts transactions in the foregin exchange market.

Theoretical spot rate curve
A curve derived from theoretical considerations as applied to the yields of actually traded Treasury debt securities, because there are no zero coupon Treasury debt issues with a maturity greater than one year. Like the yield curve, this is a graphic depiction of the term structure of interest rates. Financial glossary.

Theoretical value
Applies to derivative products. Mathematically determined value of a derivative instrument as dictated by a pricing model such as the Black Scholes model.

Theta
The ratio of the change in an option price to the decrease in time to expiration.

Thin market
A market in which trading volume is low and consequently bid and asked quotes are wide and the instrument traded is not very liquid. Very little stock to buy or sell.

Thinly traded
Infrequently traded.

Third market
Exchange-listed securities trading in the OTC market.

Thirty-day visible supply
The total volume in dollars of municipal bonds with maturities of 13 months or more that should reach the market within 30 days. Financial glossary.

Thirty-day wash rule
IRS rule stating that losses on a sale of stock may not be used as tax shelter if equivalent stock is purchased 30 days or less before or after the sale of the stock.

Three-phase DDM
A version of the dividend discount model that applies a different expected dividend rate depending on a company's life cycle phase: growth phase, transition phase or maturity phase.

Three steps and a stumble rule
A rule predicting that stock and bond prices will fall following three increases in the discount rate by the Federal Reserve. This is a result of increased costs of borrowing for companies and the increased attractiveness of money market funds and CDs over stocks and bonds as a result of the higher interest rates. Financial glossary.

Threshold for refinancing
The point when the weighted average coupon of an MBS is at a level to induce homeowners to prepay the mortgage in order to refinance to a lower rate mortgage, generally reached when the weighted average coupon of the MBS is 2 percentage points or more above currently available mortgage rates. Financial glossary.

Thrift institution
An organization formed as a depository for primarily consumer savings. Savings and loan associations and savings banks are thrift institutions.

Thrift Institution Advisory Council
A council, established following the passage of the Monetary Control Act of 1980, whose purpose is to provide information and views on the special needs and problems of thrifts. The group is comprised of representatives of savings banks, savings and loan associations and creditor unions.

Thrift plan
A defined contribution plan in which an employee contributes, usually on a before-tax basis, toward the ultimate benefits that will be provided. The employer usually agrees to match all or a portion of the employee's contributions.

Throughput agreement
An agreement to put a specified amount of product per period through a particular facility. An example is an agreement to ship a specified amount of crude oil per period through a particular pipeline.

Tick
Refers to the minimum change in price a security can have, either up or down.

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.

Tick-test rules
SEC imposed restrictions on when a short sale may be executed, intended to prevent investors from destabilizing the price of a stock when the market price is falling. A short sale can be made only when either (a) the sale price of the particular stock is higher than the last trade price (referred to as an uptick trade) or (b) if there is no change in the last trade price of the particular stock, the previous trade price must be higher than the trade price that preceded it (referred to as a zero uptick). Financial glossary.

Ticker symbol
An abbreviation assigned to a security for trading purposes.

Ticker tape
Computerized device that relays to investors around the world the stock symbol and the latest price and volume on securities as they are traded. Financial glossary.

Ticket
An abbreviation of order ticket.

Tier 1 and Tier 2
Descriptions of the capital adequacy of banks. Tier 1 refers to core capital while Tier 2 refers to items such as undisclosed resources.

Tight
In line with or extremely close to the inside market or last sale in a stock (+/- 1/8). On the money.

Tight market
A market in which volume is high, trading is active and highly competitive and consequently spreads between bid and ask prices are narrow.

Tight money
When a restricted money supply makes credit difficult to secure.

Tiki
Tick of Dow Jones Industrial Average component issues.

Tilted portfolio
An indexing strategyy that is linked to active management through the emphasis of a particular industry sector, selected performance factors such as earnings momentum, dividend yield, price-earnings ratio or selected economic factors such as interest rates and inflation. Financial glossary.

Time deposit
Interest bearing deposit at a savings institution that has a specific maturity.

Time draft
Demand for payment at a stated future date.

Time horizon
The period, usually expressed in years, for which an investor expects to hold an investment.

Time to maturity
The time remaining until a financial contract expires. Also called time until expiration. Financial glossary.

Time order
Order that becomes a market or limited price order or is canceled at a specific time.

Time premium
Also called time value, the amount by which an option price exceeds its intrinsic value. The value of an option beyond its current exercise value representing the option holder's control until expiration, the risk of the underlying asset and the riskless return.

Time-series analysis
Assessment of relationships between two or among more variables over periods of time.

Time series models
Systems that examine series of historical data; sometimes used as a means of technical forecasting, by examining moving averages. Financial glossary.

Time spread strategy
Buying and selling puts and calls with the same exercise price but different expiration dates and trying to profit from the different premiums of the options.

Time until expiration
The time remaining until a financial contract expires. Also called time to maturity.

Time value
Applies to derivative products. Portion of an option price that is in excess of the intrinsic value, due to the amount of volatility in the stock; sometime referred to as premium. Time value is positively related to the length of time remaining until expiration. Financial glossary.

Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar received today can earn interest up until the time the future dollar is received.

Time value of an option
The portion of an option's premium that is based on the amount of time remaining until the expiration date of the option contract and the idea that 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.  Financial glossary.

Time value permium
The amount by which an option's total premium exceeds its intrinsic value.

Times-interest-earned ratio
Earnings before interest and tax, divided by interest payments.

Time-Zone Arbitrage
A form of stale price arbitrage where the pricing discrepencies are due to the primary markets for the underlying securities being closed at the times that the fund is traded. Note that time zone arbitrage is sometimes mistakenly used if it were a pure synonym for stale price arbitrage. These are not synonyms since stale prices can also be due to illiquid stocks or bonds that are not traded frequently. Financial glossary.

Timeliness
A source of competitive advantage that depends on being the first to enter a given market with a product or service.

Timing option
The seller's choice of when in the delivery month to deliver. A Treasury Bond or note futures contract.

Tip
Information given by one trader to another, which is used in making buy or sell decisions but is not available to the general public.

Tired
Has been strong for a while and will probably fall due to increased supply at current price level.

Title insurance
Insurance policy that protects a policyholder from future challenges to the title claim a property that may result in loss of the property. Financial glossary.

To be announced
A contract for the purchase or sale of an MBS to be delivered at an agreed upon future date but does not include a specified pool number and number of pools or precise amount to be delivered.

Tobin's Q
Market value of assets divided by replacement value of assets. A Tobin's Q ratio greater than 1 indicates the firm has done well with its investment decisions. Named after James Tobin, Yale University economist. Financial glossary.

Toehold purchase
Often used in risk arbitrage. Accumulation by an acquirer of less than 5% of the shares of a target company. Once 5% is acquired, the acquirer must file with the SEC and other agencies to explain its intentions and notify the acquiree.  Financial glossary.

Tokyo Commodity Exchange (TOCOM)
Tokyo exchange for trading futures on gold, silver, platinum, palladium, rubber, cotton yarn and woolen yarn.

Tokyo International Financial Futures Exchange
Exchange that trades Euroyen futures and options and futures on the one year Euroyen, three month eurodollar and US dollar/Japanese yen currency.

Tokyo Stock Exchange
The largest stock exchange in Japan with the some of the most active trading in the world.

Toll revenue bond
A municipal bond that is repaid with revenues from tolls that are paid by users of the public project built with the bond revenue.

Tom next
Means to "tomorrow next". In the interbank market in Eurodollar deposits and the foreign exchange market, the value (delivery) date on a tom next transaction is the next business day.

Tombstone
Advertisement listing the underwriters of a security issue.

Ton
$100 million in bond trader's terms.

Too-big-too-fail
Government practices that protect large banking organizations from the normal discipline of the marketplace because of concerns that such institutions are so important to markets and their positions so intertwined with those of other banks that their failure would be unacceptably disruptive, financially and economically. Financial glossary.

Top
Indicates the higher price one is willing to pay for a stock in an order; implies a not held order.

Top-down approach
A method of security selection that starts with asset allocation and works systematically through sector and industry allocation to individual security selection.

Top-down equity management style
Investment style that begins with an assessment of the overall economic environment and makes a general asset allocation decision regarding various sectors of the financial markets and various industries. The bottom-up manager, in contrast, selects specific securities within the particular sectors. Financial glossary.

Top-heavy
At a price level where supply is exceeding demand.

Topline growth
Growth in revenues.

Topping out
Denoting a market or a security that is at the end of a period of rising prices and can now be expected to stay on a plateau or even to decline.

Total
Complete amount of buy or sell interest, as opposed to having more behind it.

Total asset turnover
The ratio of net sales to total assets.

Total capitalization
The total long term debt and all types of equity of a company that constitutes its capital structure.

Total cost
The price paid for a security plus the broker's commission and any accrued interest that is owed to the seller.

Total debt-to-equity ratio
A capitalization ratio comparing current liabilities plus long term debt to shareholders' equity.

Total dollar return
The dollar return on a non dollar investment, which includes the sum of any dividend/interest income, capital gains or losses and currency gains or losses on the investment.

Total Market Capitalization
The total market value of all of a firm's outstanding securities.

Total return
In performance measurement, the actual rate of return realized over some evaluation period. In fixed income analysis, the potential return that considers all three sources of return (coupon interest, interest on coupon interest and any capital gain/loss) over some investment horizon. Financial glossary.

Total return for calendar year
The profit or loss realized by an investment at the end of a specified calendar year, stated as the percentage gained or lost per dollar invested on January 1.

Total revenue
Total sales and other revenue for the period shown. Known as "turnover" in the U.K. Financial glossary.

Total risk
The sum of systematic and unsystematic risk.

Total volume
The total number of shares or contracts traded on national and regional exchanges in a stock, bond, commodity, future or option on a certain day.

Touch, the
Mainly applies to international equities. Inside market in London terminology.

Tough on price
Firm price mentality at which one wishes to transact stock, often at a discount/premium that is not available at the time.

Tout
To promote a security in order to attract buyers.

Toxic Convertible
Used by companies that are in such bad shape, that there is no other way to get financing. This instrument is similar to a convertible bond, but convertible at a discount to the share price at issuance and for a fixed dollar amount rather than a specific number of shares. The further the stock falls, the more shares you get. Popular in the mid to late 1990s. Also known as death spiral convertibles or floorless convertibles. Financial glossary.

Tracers
Refers to investment trusts which are populated by corporate bonds. In October 2001, Morgan Stanley's Tradable Custodial Receipts (Tracers) was launched. Tracers contain a number of coporate bonds and credit default swaps which are selected for liquidity and diversity. Lehman Brothers launched a similar product, Targeted Return Index Securities (Trains) in January 2002. Both contain investment grade bonds. If a bond falls out of the investment grade category, it is either liquidated from the trust or delivered to the investor. Both Tracers and Trains are 144a trust structures and are only available to qualified buyers because they are considered private securities due to the trust structure. Financial glossary.

Tracking error
In an indexing strategy, the standard deviation of the difference between the performance of the benchmark and the replicating portfolio.

Trade
An oral (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 1-5 business days later. Financial glossary.

Trade acceptance
Written demand that has been accepted by an industrial company to pay a given sum at a future date.

Trade away
Trade execution by another broker/dealer.

Trade balance
Overall result of a country's exports.

Trade credit
Credit one firm grants to another firm for the purchase of goods or services.

Trade date
The date that the counter parties in an interest rate swap commit to the swap. Also, the day on which a security or a commodity future trade actually takes place. Trades generally settle (are paid for) 1-5 business days after a trade date. With stocks, settlement is generally 3 business days after the trade. The settlement date usually follows the trade date by five business days, but varies depending on the transaction and method of delivery used. Financial glossary.

Trade debt
Accounts payable.

Trade deficit or surplus
The difference in the value of a nation's imports over exports (deficit) or exports over imports (surplus).

Trade draft
A draft addressed to a commercial enterprise.

Trade flat
For convertibles, trade without accrued interest. Preferred stock always "trades flat," as do bonds on which interest is in default or is in doubt. In general, trade in and out of a position at the same price, neither making a profit nor taking a loss.

Trade house
A firm that deals in actual commodities.

Trade Lanes
The direction of trade, e.g. US to Europe.

"Trade me out"
Work out of one's long position (usually created by committing firm principal to complete a trade block trade) by selling stock.

Trade on the wire
Immediately give a bid or offer to a salesperson without checking the floor conditions, dealer depth or customer interest. An aggressive trading posture.

Trade on top of
Trade at a narrow speed or no spread in basis points relative to some other bond yield, usually Treasury bonds. Financial glossary.

Trade Surplus
A nation's excess of exports over imports during a given time frame.

Trade weight value of the dollar
The value of the dollar pegged to, a market basket of selected foreign currencies. The Federal Reserve calculates a trade weighted value of the dollar based on the weighted average exchange value of the dollar against the currencies of 10 industrial countries. Financial glossary.

Trademark
A distinctive name or symbol used to identify a product or company and build recognition. Trademarks may be registered with the US Patent and Trademark Office.

Traders
Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. Traders can also take proprietary positions in which they seek to profit from the directional movement of prices or spread positions.

Trades by appointment
A stock that is very difficult to trade to because of illiquidity.

Trading
Buying and selling securities.

Trading Ahead
A New York Stock Exchange rule violation. Basically, in this situation the specialist puts their firm's interest ahead of the investor's interest. Consider an example. Suppose that the specialist simultaneously receives orders from two investors, one to sell 5,000 shares of XYZ and one to buy 5,000 shares of XYZ. Normally, these orders are matched. However, suppose that the specialist substitutes (matches) her own firm's 5,000 shares of XYZ. That is, the firm's own shares are sold instead of the order that came in previously. This disadvantages the buyer because the very next transaction will be the order to sell 5,000 shares of XYZ (which will likely put downward pressure on the price). Notice that the firm has bailed out of XYZ at a higher price than if the order was reversed (the specialist's firm selling afterwards). Trading ahead is part of what is known as negative obligation. Trading ahead should not be confused with front running. Financial glossary.

Trading authorization
A document (power of attorney) a customer gives to a broker in order that the broker may buy and sell securities on behalf of the customer.

Trading costs
Costs of buying and selling marketable securities and borrowing. Trading costs include commissions, slippage and the bid/ask spread.

Trading desk (dealing desk)
Personnel at an international bank who tradespot and forward foreign exchange.

Trading dividends
Maximizing a firm's revenues by purchasing stock in other firms in order to collect the maximum amount of dividends of which 70% is tax-free. Financial glossary.

Trading halt
When trading of a stock, bond, option or futures contract is stopped by an exchange while news is being broadcast about the security.

Trading limit
The exchange imposed maximum daliy price change that a futures contract or futures option contract can undergo.

Trading pattern
Long range direction of a security or commodity futures price, charted by drawing one line connecting the highest prices the security has reached and another line connecting the lowest prices at which the security has traded over the same period.

Trading posts
The positions on the floor of a stock exchange where the specialists stand and securities are traded.

Trading price
The price at which a security is currently selling.

Trading profit
The profit earned on short term trades of securities held for less than one year, subject to tax at normal income tax rates. Financial glossary.

Trading range
The difference between the high and low prices traded during a period of time; for commodities, the high/low price limit an exchange establishes for a specific commodity for any one day's trading.

Trading unit
The number of shares of a particular security that is used as the acceptable quantity for trading on the exchanges. Financial glossary.

Trading variation
The increments to which securities prices are rounded up or rounded down.

Trading volume
The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares.

Traditional IRA
A tax deferred individual retirement account that allows annual contributions of up to $2000 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.

Trailing earnings
Past earnings. Often used in the context of the price earnings ratio. This ratio is usually distinguished as price to trailing earnings (today's price divided by the most recent 12 months of earnings) versus price to prospective earnings (today's price divided by consensus forecast earnings for the next 12 months). Financial glossary.

Trailing sales
Past sales. Often used in the valuation of companies that have negative cash flows or earnings. The company is said to be valued at some multiple of past sales - usually, the last 12 months sales.

Tranche
One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward and/or maturity characteristics.

Transaction
The delivery of a security by a seller and its acceptance by the buyer.

Transactions costs
The time, effort and money necessary, including such things as commission fees and the cost of physically moving the asset from seller to buyer. Transcations costs should also include the bid/ask spread as well as price impact costs (for example a large sell order could lower the price).

Transaction demand (for money)
The money needed to accommodate a firm's expected cash transactions.

Transaction exposure
Risk to a firm with known future cash flows in a foreign currency, that arises from possible changes in the exchange rate.  Financial glossary.

Transaction fee
A charge an intermediary, such as a broker-dealer or a bank, assesses for assisting in the sale or purchase of a security.

Transaction Insured Trade Acceptance Locator
A trade acceptance through an insurance entity (rather than a bank) which is conditional upon exporter performance.

Transaction loan
A loan extended by a bank for a specific purpose. Lines of credit and revolving credit agreements involve by contrast loans that can be used for various purposes.

Transaction tax
Applies mainly to international equities. Levies on a deal that foreign governments sometimes charge. Financial glossary.

Transaction risk
The risk of changes in the home currency value of a specific future foreign currency cash flow.

Transactions motive
A desire to hold cash in order to conduct cash based transactions.

Transcript of Account
A listing of all prior and present registered security holder account information.

Transfer
A change of ownership from one person or party to another.

Transfer agent
Individual or institution a company appoints to look after the transfer of securities.

Transfer On Death
The process of changing title of a security from one name to another upon the death of one of the title holders.

Transfer payments
Payments from a government to its citizens, such as welfare and other government benefits. Financial glossary.

Transfer price
The price at which one unit of a firm sells goods or services to another unit of the same firm.

Transfer risk
The risk associated with the possibility of a currency not being able to be sent out of the country, usually due to central bank restrictions or a national debt rescheduling.

Transfer tax
A small federal tax on the movement of ownership of all bonds (except obligation of the US, foreign governments, states and municipalities) and all stocks. Financial glossary.

Transferable letter of credit
Document that allows the first beneficiary on a standby bank assurance of funds to transfer all or part of the original letter of credit to a third party.

Transferable Stock Options
Options that provide by their terms that they may be transferred by the optionee, generally only to a family member or to a trust, limited partnership or other entity for the benefit of family members or to a charity.

Transferable put right
An option issued by a firm to its share holders to sell the firm one share of its common stock at a fixed price (the strike price) within a stated period (the time to maturity). The put right is "transferable" because it can be traded in the capital markets. Financial glossary.

Transferee
The party who has received the benefits of a letter of credit by action of a transfer.

Transferor
The beneficiary of a transferable letter of credit who causes a bank to transfer the credit to another party.

Transition phase
A stage of development when a company begins to mature and its earnings decelerate to the rate of growth of the economy as a whole.  Financial glossary.

Translation exposure
Risk of adverse effects on a firm's financial statements that may arise from changes in exchange rates.

Translation Risk
The risk of changes in the reported home currency accounting results of foreign operations due to changes in currency exchange rates.

Travel and entertainment expense
Funds spent on business travel and entertainment that qualify for a tax deduction of 50% of the amount claimed.

Treasurer
The corporate officer responsible for designing and implementing a firm's financing and investing activities. Financial glossary.

Treasurer's check
A check issued by a bank to make a payment. Treasurer's checks outstanding are counted as part of a bank's reservable deposits and as part of the money supply.

Treasury
US Department of the Treasury, which issues all Treasury bonds, notes and bills as well as overseeing agencies. Also, the department within a corporation that oversees its financial operations including the issuance of new shares. Financial glossary.

Treasury bills
Debt obligations of the US Treasury that have maturities of one year or less. Maturities for T-bills are usually 91 days, 182 days or 52 weeks. Treasury bills are sold at a discount from face value and do not pay interest before maturity. The interest is the difference between the purchase price of the bill and the amount that is paid to you either at maturity (this amount is the face value) or when you sell the bill prior to maturity.

Treasury bonds
Debt obligations of the US Treasury that have maturities of more than 10 years.

Treasury certificates
From 1963 to 1975, the Treasury issued something called a "Treasury Certificates". It was a non marketable, public issue with a short maturity, usually three months and never more than a one year. They were issued once or twice every month with odd interest rates (such as 5.471% and 6.053%) and sold at par. Financial glossary.

Treasury direct
A system allowing an individual investor to make a non competitive bid on US Treasury securities and thus avoid broker-dealer fees.

Treasury Inflation-Protected Security (TIPS)
First issued by the U.S. Treasury in 1997, these Treasury bonds attempt to protect investors against fluctuations in inflation by linking the principal amount to the consumer price index. Each year, the principal is adjusted by the inflation rate during the previous year. The index for measuring the inflation rate is the non seasonally adjusted U.S. City Average All Items Consumer Price Index for All Urban Consumers (CPI-U), published monthly by the Bureau of Labor Statistics (BLS). These bonds are taxable. Indeed, one must pay tax on both the interest and the increase in principal. TIPS are one of two types of inflation-indexed securities sold by the U.S. Treasury; the other type is Series I Savings Bonds. Financial glossary.

Treasury Investors Growth Receipt
US government backed bonds without coupons, meaning that the bondholders do not receive the periodic interest payments. The principal of the bond and the individual coupons are sold separately.

Treasury notes
Debt obligations of the US Treasury that have maturities of more than one year, but not more than 10 years.

Treasury securities
Securities issued by the US Department of the Treasury.

Treasury Shares
Shares issued in the name of the corporation. The shares are considered issued, but not outstanding.Usually refers to stock that was once traded in the market but has since been repurchased by the corporation. Treasury stock not considered when calculating dividends or earnings per share. Financial glossary.

Treasury stock
Common stock that has been repurchased by the company and held in the company's treasury.

" Treat me subject "
In the equities market, a conditional bid or offer. "My bid or offer is not firm, but is subject to confirmation between other parties and to market changes."

Trend
The general direction of the market.

Trend Ratio Analysis
The comparison of the successive values of each ratio for a single firm over a number of years.

Trendline
A technical chart line that depicts the past movement of a security and that is used in an attempt to help predict future price movements. Financial glossary.

Treynor Index
A measure of the excess return per unit of risk, where excess return is defined as the difference between the portfolio's return and the risk-free rate of return over the same evaluation period and where the unit of risk is the portfolio's beta. Named after Jack Treynor.

T-Rex Fund
A large venture capital fund (over one billion dollars). Such funds are known for imposing strong discipline on the firms they fund.

Triangular arbitrage
Striking offsetting deals among three markets simultaneously to obtain an arbitrage profit.

Trickle down
An economic theory that the support of businesses that allows them to flourish will eventually benefit middle - and lower - income people, in the form of increased economic activity and reduced unemployment. Financial glossary.

TRIN
Name derived from Trading Index. Also known as an ARMS index. The index is usually calculated as the number of advancing issues divided by the number of declining issues. This, in turn, is divided by the advancing volume divided by the declining volume. If there is considerably more advancing volume relative to declining volume this will tend to reduce the index (i.e. increase the denominator). Hence, a value less than 1.0 is bullish while values greater than 1.0 indicate bearish demand. The index often is smoothed with a simple moving average.

Triple net lease
A lease providing that the tenant pay for all maintenance expenses, plus utilities, taxes and insurance. This results in lower risk for investors, who usually form a limited partnership.

Triple tax-exempt
Municipal bonds featuring federal, state and local tax-free interest payments. Financial glossary.

Triple witching hour
The four times a year that the S&Pfutures contract expires at the same time as the S&P 100 index option contract and option contracts on individual stocks. It is the last trading hour on the third Friday of March, June, September and December, when stock options, futures on stock indexes and options on these futures expire concurrently. Massive trades in index futures, options and underlying stock by hedge strategists and arbitrageurs cause abnormal activity (noise) and volatility. Financial glossary.

Trough
The transition point between economic recession and recovery.

True interest cost
For a security such as commercial paper that is sold on a discount basis, true interestcost is the coupon rate required to provide an identical return assuming a coupon-bearing instrument of like maturity that pays interest in arrears.

True lease
A contract that qualifies as a valid lease agreement under the Internal Revenue Code.

Trust
A fiduciary relationship calling for a trustee to hold the title to assets for the benefit of the beneficiary. The person creating the trust, who may or may not also be the beneficiary, is called the grantor. Financial glossary.

Trust company
An organization that acts as a fiduciary and administers trusts.

Trust deed
Agreement between trustee and borrower setting out terms of a bond.

Trust fund transaction
An intra budgetary financial arrangement in which both payments and receipts occur within the same trust fund group.

Trust Indenture Act of 1939
A law that requires all corporate bonds and other debt securities to be issued subject to indenture agreements and comply with certain indenture provisions approved by the SEC.

Trust receipt
Receipt for goods that are to be held in trust for the lender.

Trustee
Agent of a bond issuer who handles the administrative aspects of a loan and ensures that the borrower complies with the terms of the bond indenture. Financial glossary.

Trustee in bankruptcy
An appointed trustee who supervises and administers the affairs of a bankrupt company or individual.

Truth in lending law
Legislation governing the granting of credit, that requires lenders to disclose the true cost of loans and the actual interest rates and terms of the loans in a manner that is easily understood.

TT&L account
Treasury tax and loan account at a bank.

Turkey
A losing investment.

Turnaround
Securities bought and sold for settlement on the same day. Also describes a firm that has been performing poorly, but changes its financial course and improves its performance. Financial glossary.

Turnaround time
Time available or needed to effect a turnaround.

Turnkey construction contract
A type of construction contract under which the construction firm is obligated to complete a project according to prespecified criteria for a price that is fixed at the time the contract is signed.

Turnover
For mutual funds, a measure of trading activity during the previous year, expressed as a percentage of the average total assets of the fund. A turnover rate of 25% means that the value of trades represented one fourth of the assets of the fund. For finance, the number of times a given asset, such as inventory, is replaced during the accounting period, usually a year. For corporate finance, the ratio of annualsales to net worth, representing the extent to which a company can grow without outside capital. For markets, the volume of shares traded as a percent of total shares listed during a specified period, usually a day or a year. For Great Britain, total revenue. Percentage of the total number of shares outstanding of an issue that trades during any given period. Financial glossary.

Turnover rate
Measures trading activity during a particular period. Portfolios with high turnover rates incur higher transaction costs and are more likely to distribute capital gains, which are taxable to nonretirement accounts. Financial glossary.

12B-1 fees
The percent of a mutual fund'sassets used to defray marketing and distribution expenses. The amount of the fee is stated in the fund's prospectus. The SEC has recently proposed that 12B-1 fees in excess of 0.25% be classed as a load. A true no load fund has neither a sales charge nor a 12b-1 fee.

12B-1 funds
Mutual funds that do not charge an up-front or back end commission, but instead take out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12B-1 (passed in 1980). Financial glossary.

Twenty bond index
A benchmark indicator of the level of municipal bond yields. It consists of the yields on 20 general obligation municipal bonds with 20-year maturities with an average rating equivalent to a1l.

Twenty-day period
The period during which the SEC inspects registration statement and preliminary prospectus prior to a new issue or secondary distribution.

20% cushion rule
Guideline that revenues from facilities financed by municipal bonds should exceed the operating budget plus maintenance costs and debt service by at least 20% to allow for unforeseen expenses. Financial glossary.

25% rule
The guidelines that bonded debt over 25% of a municipality's annual budget is excessive.

Twisting
Convincing a customer that trades are necessary in order to generate a commission. This is an unethical practice.

Two dollar broker
Floor broker of the NYSE, who executes orders for other brokers having more business at that time than they can handle with their own private floor brokers or who do not have their exchange member on the floor. Financial glossary.

Two factor model
Usually, Fischer Black's zero-beta version of the capital asset pricing model. It may also refer to another type of model whereby expected returns are generated by any two factors.

Two fund separation theorem
The theoretical result that all investors will hold a combination of the risk free asset and the market portfolio.

Two sided market
A market in which both bid and asked prices, good for the standard unit of trading, are quoted. When customers or market makers are lined up on both sides (buy and sell) of a stock.

Two state option pricing model
A pricing equation allowing an underlying asset to assume only two possible (discrete) values in the next time period for each value it can take on in the preceding time period.

Two tier bid
Takeover bid in which the acquirer offers to pay more for the shares needed to gain control than for the remaining shares or to pay the same price but at different times in the merger period; contrasts with any or all bid. Financial glossary.

Two tier tax system
Taxation system that results in taxing the income going to shareholders twice.