Glossary T
Section T
Section T
Taxable Equivalent Yield (TEY)
The interest rate which must be received on a taxable security to provide the holder the same after-tax return as that earned on a tax-exempt security.
Taxable Money Market
A mutual fund that seeks income and stability by investing in high-quality, short-term obligations issued by the U.S. Government, corporations, financial institutions, and other entities.
Taxable Municipal Bond
A municipal bond whose interest is not exempt from federal income taxation.
Tax Free Money Market
A mutual fund that seeks tax-free income and stability by investing in high-quality, short-term obligations, which are exempt from federal taxes and the taxation of a specified state.
Tax Increment Revenue Bonds
Bonds secured only by the expected increase in tax revenues as a result of some property development or improvement.
Tax Revenue Bond
A bond secured by the proceeds of a specific tax whose rate cannot be raised if it becomes insufficient to pay the bonds.
Technology/Communications Funds
This type of mutual fund seeks capital appreciation by investing a minimum of 65% of its assets in the technology sector.
TEFRA
The Tax Equity and Fiscal Responsibility Act of 1986 which, among other things, restricted banks from deducting the cost of carrying tax free bonds in their portfolios purchased after August 6, 1986, unless those bonds are Bank Qualified, in which case they may still deduct a portion of the cost of carrying those bonds. See also Bank Qualified.
Term
Generally, a period of time for a contract, policy or agreement. Specifically, time period during which a bond must be held prior to maturity.
Term of Loan
The amount of time you have to repay the mortgage loan, usually expressed as a number of months. For example, the term for a 30-year fixed-rate mortgage is 360 months (30 years X 12 months).
Tick
The smallest movement a security's price can take (often 1/8 for stocks and 1/32 for bonds).
Ticker Symbol (Stock Symbol)
A letter code that abbreviates the complete corporate name and is used to designate a specific security.
Time in Force
The length of time an order remains active in the market. For example: Day, Good Till Cancelled, Fill Or Kill, Immediate Or Cancel.
Time Weighted Rate of Return
The rate at which a dollar invested at the beginning of a period would grow if no additional capital were invested and no cash withdrawals were made. It provides an indication of value added by the investment manager, and allows comparisons to the performance of other market indices.
Too Late to Cancel
This message, which appears in the Online Services Transaction Detail page, indicates that your cancel or change request was received after the order had already been executed.
Top-Down
An approach to investment research that focuses first on broad economic trends and interest rate movements and then specific sectors and industries that should benefit from those trends. Individual securities are then selected within these sectors, based on the established investment criteria and the anticipated impact of the identified trends.
Top Holdings
A listing of corporations that a mutual fund is primarily invested in; this information is required by the SEC to be updated on a semiannual basis.
Total Income Dividend
The equivalent sum of all income, capital gains, and interest that a security distributes to its shareholders.
Total Monthly Payment
The sum of the loan principal, interest, taxes and insurance charges (known as PITI) that make up your monthly mortgage payment.
Total Net Assets
Net Asset Value A mutual fund's share price, computed by subtracting total liabilities from total assets and dividing by the number of shares outstanding.
Total Return
Investment performance measure over a stated time period which includes coupon interest, interest on interest, and any realized and unrealized gains or losses.
Total Return Percentage Rank within Category
A mutual fund's or sub-account's rank against all other funds or sub-accounts within its investment category based on total return, not including the effects of sales charges. Each rank is expressed as a percentile where 1 = best and 100 = worst.
Trading Flat
When bonds do not trade with accrued interest. Bonds can trade flat if they are settled on a coupon date, or if the interest payments are in arrears.
Trading Range
The area in which a stock or a market has traded during a given period. (or)
The trading limit established by a commodities futures exchange on a given commodity.
Treasury Bills
As displayed in Portfolio Analysis, represents the time-weighted rate of return of the 90 day US Treasury bill for time period being displayed. This is a good proxy for the return of cash and equivalents.
Treasury Bond
A U.S. government long-term security, sold to the public and having a maturity longer than 10 years; considered the safest of all bond categories.
Treynor
A gauge of risk-adjusted performance calculated by dividing the excess return of a portfolio above the risk-free rate by its beta coefficient. Higher values are desirable and indicate greater return per unit of risk.
Triple Witching Hour
The last trading hour on the third Friday of March, June, September and December when options and futures on stock indexes expire concurrently.
Truth-in-Lending Act
A federal law, part of The Consumer Credit Protection Act, requiring lenders to clearly disclose key credit terms in a standard format. The Act also gives you the right to cancel certain types of loan contracts within three business days.
Turnover Ratio
A measure of the amount of buying and selling activity of a security. Turnover is defined as the lesser of securities sold or purchased during a year divided by the average monthly net assets. A turnover of 100 percent, for example, implies that positions are held, on average, for about a year.
