Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: T

TACTICS

Means of carrying out a strategy that is planned to deal with a moments demands.

TANGIBLE ASSET

Assets listed as plant equipment, property including machinery, cash, anything that has a physical existence.

TARE ALLOWANCE

Part of the gross weight that can be deducted as weight of ghee packaging or container.

TARGET PRICE

An investor’s or analyst’s opinion about a security’s future price that will be offered for the next 12 months.

TAX ACCOUNTING

The accounting practices that incorporate laws for taxation that is regulated by the IRS.

TARGET AUDIENCE

The identified group of people who will be the recipients of an advertising campaign. See target population.

TARGET RATE

The rate is established by the banking institution’s Asset Liability Committee that is used to set the attractive reprising for maturing deposits or loans.

TAX AVOIDANCE

The lawful tax liability minimization that occurs from a sound financial plan. Tax avoidance is legal but tax evasion is not.

TAILING A HEDGE

When a hedge is discounted using present value because the value changes daily.

TERM STRUCTURE

Mapping interest rates across time on a yield curve. Refer to expectation, liquidity preference, and market segmentation theory.

TIME SPREAD

A spread that takes advantage of volatility or percieved price in the forward market. This happens when options are traded with the same strike price but different maturity dates. AKA calendar spread

TWOTIER BID

When a take over happens because stockholders are offered a great price for a first cut off date. The remaining holders get a less attractive deal. Refer to anyandall bid and fair

TERMINAL EXPECTED RISK EXPOSURE

Expected exposure of a derivative based on an underlying market reference. Refer to average expected, average worstcase, and terminal worstcase exposures.

TIME VALUE

The remaining value of a contract attributed to time. The value declines daily. Refer to theta and time decay.

TRANSLATION RISK

Loss that occurs when a foreign exchange currency is turned into the home countries monetary unit. It is reflected in an equity account. AKA currency translation risk. Refer to transaction risk.

TYING

When an institution offers a client a loan at a low margin in exchange for better business opportunites in the future. This is sometimes illegal. Refer to reverse tying.

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