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

Category: T

TAXABLE EQUIVALENT YIELD

The yield on tax free securities. It is compared with taxable investment opportunities. Refer to yield to maturity, yield to call, simple yield, bond equivalent yield, and discount yield.

THIRD MARKET

A marketplace for trading over the counter interests. Or exchanging between nonmember firms.

TRIANGLE

A chart that looks like a triangle. The price changes are shown as two points on the bottom and one at the top. Any breakout from the triangle indicates a move upward

TEARUP PRICE

The closeout price of a derivative. It is used to calculate profit spread. AKA unwind price.

TICK VALUE

The value of a derivative contract at single price increment.

TOM NEXT

When a transaction on the foreign exchange or money market that is processed the next day. AKA dealing over tomorrow and rollover.

TRIGGER

An event that sends up a warning to an investor to buy or sell.

TEASER

A low interest rate or a high deposit rate used to entice investors. After several quarters the normal rates apply.

TIDE PROVISION

When directors evaluate their poison pill defences every three years.

TOMBSTONE

The report generated for a security at its maturation date. It shows the details of the transaction and the issuer.

TRIPLE TRIGGER

An insurance payout that happens if three specific triggers occur. The first one is related soley to an insurance risk while the second and third can be financial or insurance related. Refer

TEENY

The smallest amount that can be traded in bonds and securities.

TIER 1 CAPITAL

A banks core capital in the form of stocks, earnings, and reserves. Refer to tier 2 capital and economic capital.

TOO BIG TO FAIL

A financial institution that cannot fail without effecting the market. So they are granted help from central bank and possibly given bail out.

TRIPLE WITCHING HOUR

When futures, options, and equity settle on the same day. This happens once each quarter.

TEMPERATURE DERIVATIVE

A derivative effected by the temperature index.Payment is made based on temperature movement. It is traded on a seasonal basis. Refer to temperature linked bond.

TIER 2 CAPITAL

Additional capital acquired by a bank. Refer to economic capital and tier 1 capital.

TOTAL CONTROL

When company control is gained through ownership. It is common for family owned businesses. Refer to legal mechanism, majority, management, minority, and voting trust control.

TURKEY

A bad business move deal that once looked promising.

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