# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Treasury Bill (T- Bill)
A fixed-income security issued by the U.S. Government.

Takeover
The acquisition of control over a corporation by another company, which normally ousts the current management. The takeover can occur by means of a proxy fight or the acquisition of a controlling quantity of common stock.
Talisman The Exchange's computerized settlement system.

Target Fund
A mutual fund containing bonds that mature in a single year, giving the entire fund a terminal maturity in that year.

Target Maturity Fund
A fund that invests primarily in zero coupon U.S. Treasury securities, or in coupon-bearing U.S. government securities targeted to mature in a specific year.

Tax Anticipation Bill
Short-term security similar to a T bill that is accepted at par in payment of corporate federal taxes.

Tax Anticipation Note
A municipal note issued in anticipation of revenues from a future tax.

Tax Exempt Bonds
Municipal securities (whose interest is free from federal income tax).

Tax Preferences
Certain tax-related benefits that create unusual tax savings, such as accelerated depreciation and tax-exempt interest from certain municipal bonds.

Tax-Deferred
Tax treatment of certain products and investments that results in income taxation only upon maturity or withdrawal of funds.

Tax-Deferred Life Insurance
Cash Value Funds held in a life insurance policy that exceed the amount used in the current year for administrative and mortality expenses. Earnings on these funds are generally not taxed until withdrawn.

Tax-Exempt Bond Fund
A fund that invests in municipal bonds. While investors do not pay federal income taxes on the income from these funds, they may be subject to state or local taxes.

Tax-Exempt Bonds
Securities issued by states, cities and other public authorities, the interest from which is either wholly or partly exempt from federal income tax and possibly from state or local income taxes.

Tax-Exempt Interest
The interest earned on tax-exempt securities is not included in the investor's gross income for regular federal income tax purposes. Depending on the original use of the money when the security was issued, the interest may be subject to alternative minimum tax. In most states, the income from municipal bonds issued within that state is tax-exempt to residents of the state.

Tax-Sheltered Annuity (TSA)
A 403(b) plan that invests in an annuity. (Please see #, A 403(b) plan)

Tax-Sheltered Custodial Account (TSCA)
A 403(b) plan that invests in mutual funds. (Please see #, A 403(b) plan)

Taxable Asset Status
Assets that are not tax-exempt or tax-deferred are considered "taxable." This means the income derived from the asset is taxed in the year it is produced. Tax-deferred assets include assets held in an IRA, 401(k) plan, 403(b) plan, non qualified tax-deferred annuity, tax-deferred annuity, tax-deferred life insurance cash value and other qualified assets.

Taxable Equivalent Yield
The yield that would have to be earned on a security to pay as much, after tax, as what is earned from a tax-exempt bond.

Taxable Income
The amount of income used to compute tax liability. It is calculated by starting with adjusted gross income, subtracting itemized deductions or the standard deduction and then subtracting the amount allowed for personal exemptions.

Technology Fund
A fund that invests primarily in the stocks of companies engaged in the technology industry.

Telephone Switching
The movement of an investor's funds from one mutual fund to another on the basis of an order given via telephone.

Tenancy by the Entirety
Joint tenancy ownership between spouses. This type of property ownership is used only in certain states. See Joint tenancy.

Tenancy In Common
Type of ownership of property by two or more persons in which each owns an undivided interest in the whole. Upon the death of a co-tenant, the deceased person's interest passes as part of the estate through probate: the interest does not pass directly to the remaining co-tenant(s).

Tender Offer
The offer made by one company or individual for shares of another company. The offer may be in the form of cash or securities.

Term Life Insurance
Life insurance that provides financial protection for a specified period of time. If death occurs during this period, the face amount of the policy is paid to the beneficiary. If the insured person survives through the period of coverage, no payment is made.

Term Maturity
Bonds of an issue all mature on the same date.

Term Structure Of Interest Rates
A graph representing the yield to maturity of Treasury securities at identified years of maturity.

Testator
A person who dies leaving a will. The female form is Testatrix.

Top Down
An investment approach that first seeks to define major economic and industry trends, and then proceeds to identify specific companies that are likely to benefit from those trends. (See also "bottom-up.")

Total Income
All income received during a year including taxable income and tax-exempt income. It does not include tax-deferred income.

Total Return
A measure of a fund's performance that takes three factors into account: income dividends, capital gains distributions, and share price appreciation/depreciation.

Trade Confirmation
Written verification and information concerning a transaction that is sent to the customer on or before the first business day following the trade date.

Trade Date
The date on which a purchase or redemption of mutual fund shares is conducted.

Traded Options Transferable
Options with the right to buy and sell a standardized amount of a security at a fixed price within a specified period.

Trading Authorization
Written permission for one to trade in another's account.

Transfer
The process by which securities are reregistered to new owners. The old securities are canceled and new ones issued to the new registrants.

Transfer Agent
A commercial bank that retains the names and addresses of registered securities owners and that reregisters traded securities to the name of the new owners.

Transfer Agent
A commercial bank that retains the names and addresses of registered securities owners and that reregisters traded securities to the name of the new owners.

Treasuries
Fixed income securities issued by the U.S. government. Treasuries include:

Treasury Bill (T- Bill)
A fixed-income security issued by the U.S. Government.

Treasury Bills
Obligations issued by the Department of the Treasury maturing in 13, 26, or 52 weeks.

Treasury Bond
Long-term (10 to 30 years), fixed interest government debt security.

Treasury Direct
The program through which investors may purchase new issues of Treasury bills, notes, and bonds directly from the Federal Reserve.

Treasury Note
Medium-term (1 to 10 years), fixed interest government debt security.

Triple Tax-Exempt Fund
A municipal bond mutual fund whose dividends and interest are exempt from federal, state and local income taxes for residents of a particular state.

Trust
A form of property ownership under which the legal title to property is held by one person ("trustee") for the benefit of another person ("beneficiary").

Trust (Irrevocable)
A trust which may not be terminated after its creation by the grantor

Trust (Living)
A trust created by a person during his or her lifetime

Trust (Revocable )
A trust in which the grantor reserves the right to terminate the trust.

Turnover Rate
The rate at which the fund buys and sells securities each year. For example, if a fund's assets total $100 million and the fund bought and sold $100 million of securities that year, its portfolio turnover rate would be 100%.

Two-Dollar Broker
An exchange member who executes orders from other member firms and charges a fee for each execution.