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T


Term loan

Term loan established according to a variable interest rate and expiry dates.  A term loan almost always matures in 1 to 10 years.


Top-Down Approach
An investment strategy that focuses on general market trends and selects specific stock sectors that can benefit from these broad trends.


Total Return

Annual return on an investment including appreciation and dividends or interest.


Trade date
The date when the purchase or sale of a bond is executed.


Transfer agent

A party appointed by an issuer to maintain records of securities owners, to cancel and issue certificates and to address issues arising from lost, destroyed or stolen certificates.


Treasury Stock
Stock reacquired by the issuing company and available for retirement or resale.


Trustee
A bank designated by the issuer as the custodian of funds and official representative of bondholders.


Turnover
For a company, the ratio of annual sales to inventory or equivalently, the fraction of a year that an average item remains in inventory. Low turnover is a sign of inefficiency, since inventory usually has a rate of return of zero. For a mutual fund, the number of times per year that an average currency unit of assets is reinvested. In the Stock Market, a measure of trading activity; the volume of shares traded as a percent of total shares listed during a specified period, usually a day or a year.


U


Underwrite

To assume the risk of buying a new issue of securities from the issuing corporation or government entity and reselling them to the public.


Unit investment trust

Investment funds created with a fixed portfolio of investments that never changes over the life of the trust. They are created by brokerage houses, and are liquidated as investments within the trust are paid off.    


V


Volatility

Characteristic of a security, commodity, or market to rise or fall sharply in price within a short-term period.