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

Category: T

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.

TAG ALONG PROVISION

Provision in an investment agreement where the stock holders have the right to liquidate part of their investment when the firm is raising more capital.

TANGIBLE BOOK VALUE

The value that is calculated by the deduction of assets that are not tangible, expenses for start-up and any financing costs that are deferred from the moral book value, BV, of the

TARGET RISK

The prospective holders of policies that are divided by age, race, sex and other demographic factors.

TAX CERTIFICATE

The proof of payment of taxes due on a property or income that is official.

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.

TAKEDOWN

The funding of a lease for 1 to 15 years. Used to fund inventory.

TERMINAL EXPOSURE

Exposure of a derivative based on its ending performance. Refer to average exposure.

TREASURY INFLATIONPROTECTED SECURITY (TIPS)

A US treasury note or bond whose profits are linked to inflation. They are sold in small amounts to make them available to retail investors.They pay coupons on a cycle with principal

TAKEOUT

Replacing one mode of financing for another.

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