In banking, truncation refers to the elimination of the service of returning canceled checks to customers. In computing, truncation involves dropping digits to the right of the decimal point of a number.
An arrangement enabling property to be held by one or more trustees for the benefit of beneficiaries, commonly used to provide for families and in commercial situations.
A trust account is a separate bank account, segregated from a broker's own funds, where the broker is required by state law to deposit all monies collected for clients. This account is often also known as an escrow account in some states.
A Trust Agreement, also known as a Trust Instrument, is a legal document that sets up a trust and outlines the rules that must be followed by the trustee and the beneficiaries.
A trust certificate is a financial instrument issued to finance the purchase of railroad equipment. Under this arrangement, trustees hold the title to the equipment as security for the loan until the debt is fully repaid.
A trust company is an organization, often associated with a commercial bank, that acts as a trustee, fiduciary, or agent for individuals or businesses in managing various trust-related services.
A trust deed is a legal document that outlines the terms and conditions of a trust, typically including the names of the trustees, the identity of the beneficiaries, the nature of the trust property, and the powers and duties of the trustees.
A trust fund refers to real property or personal property held in trust for the benefit of another person. The trust fund's principal or body is called the corpus.
A trust instrument is a legal document that creates a trust and stipulates its terms, trustee, beneficiaries, income, and corpus disposition.
A trust share signifies partial participation and ownership in a corporation's management. It entitles the holder to a portion of the profits.
A comprehensive guide to understanding the nature, administration, and implications of general management in trust operations.
A trustee is an individual or company holding legal title to property for the benefit of one or more beneficiaries, ensuring the property is managed in accordance with the terms of the trust.
A trustee in bankruptcy is an individual or entity appointed to manage the property and financial affairs of a bankrupt individual or entity. The trustee's responsibilities include collecting and liquidating assets, distributing the proceeds to creditors, and ensuring that the bankruptcy process is conducted in accordance with applicable laws.
A Trustee's Sale is a foreclosure sale conducted by a trustee under the stipulations of a deed of trust, where the trustee is authorized to foreclose the mortgage and sell the property upon the borrower's default.
A trustor, also known as a settlor, is an individual or entity that creates a trust by transferring assets to a trustee for the benefit of specified beneficiaries.
The Truth in Lending Act (TILA) is a federal law designed to ensure that consumers are provided with accurate and transparent information regarding the cost of credit, allowing them to compare credit offers more effectively. It mandates commercial lenders to disclose the annual interest rate and total interest charges, and provides borrowers a three-day rescission period for certain secured loans.
Tuition refers to the amounts paid to an educational organization that maintains a regular faculty and curriculum and has a regularly enrolled body of students.
A tuition reduction is a benefit often provided to employees of educational institutions and their dependents, allowing for a reduction in tuition fees that is excludable from gross income.
A Tuition Tax Credit is a non-refundable credit offered by the federal government that can be used to offset the cost of college education by reducing the amount of tax owed.
Tulipomania refers to the speculative bubble in Holland during the early 1620s, characterized by incredibly high prices paid for tulip bulbs. It is frequently used to describe investment price rises that are unjustified by the underlying fundamentals.
The term 'Turkey' in finance refers to a disappointing investment. It may be used in reference to a business deal that went awry, to the purchase of a stock or bond that dropped in value sharply, or to a new securities issue that did not sell well or had to be sold at a loss.
A significant shift or turning point in a course of events, often indicating the commencement of positive change or improvement.
A favorable reversal in the fortunes of a company, a market, or the economy at large. Stock market investors speculating that a poorly performing company is about to show a marked improvement in earnings might profit handsomely from its turnaround.
Turnaround time refers to the period required to complete a task or fulfill an order once it has been initiated.
A foundational report providing directors of UK listed companies with guidance on risk management, internal controls, and their obligations under the Corporate Governance Code.
A turnkey project refers to a type of project that is constructed or manufactured by a company and completed in its entirety before being handed over to the client, who can then immediately use it.
Turnover, also known as sales revenue, represents the total income generated by an organization from selling goods and services, excluding discounts and taxes, within a specified period.
The turnover ratio is a financial metric that evaluates the efficiency with which a company utilizes its assets to generate revenue. It is an important indicator of operational performance.
A turnover tax is a tax assessed on a good at an intermediate stage of production rather than on the finished good, commonly referred to in comparisons with Value-Added Tax (VAT).
Twin Plants, or maquiladoras, refer to manufacturing facilities in Mexico often employed by U.S. companies for their cost-effective labor and proximity to the U.S. market.
Twitter is a popular microblogging site where users can share and interact with messages, called tweets, limited to a character limit, inspiring concise and timely communication.
Two and Twenty is a typical formula for compensation of hedge fund managers, where 2% of total asset value is charged as a management fee, and an additional 20% of profits is taken as a performance fee.
A two-column cash book that records receipts and payments made but does not record discounts allowed or discounts received.
A two-tailed test, also known as a two-sided or nondirectional test, is a method in hypothesis testing that examines whether two estimates of parameters are equal without considering which one is smaller or larger. This type of test rejects the null hypothesis if the test statistic is significantly small or large.
A governance structure utilized by some large organizations, involving both a board of management and a supervisory board, designed to enhance corporate governance.
Two-Tier Wage Plans involve union wage concessions that allow new employees to be paid a lower rate than veteran employees, aiming to enable companies to compete more effectively.
Two-Way ANOVA is a statistical test procedure that assesses the effect of two independent variables on a dependent variable by examining the interaction between these variables.
A tycoon is a leader in business who has achieved great wealth, power, and influence, often synonymous with terms such as industrialist, magnate, or corporate captain.
Tying contracts are contractual agreements where sellers grant buyers access to a product only if the buyers also agree to purchase additional products. These agreements are forbidden under Section 3 of the Clayton Antitrust Act.
In statistical testing, a Type 2 Error occurs when the null hypothesis is not rejected even though it is false. This error, also known as a false negative, has significant implications in hypothesis testing as it can lead to incorrect conclusions.
In statistical hypothesis testing, a Type I Error occurs when the null hypothesis is rejected when it is actually true. This incorrect rejection leads to a false positive result.
A typeface is a particular design of lettering that includes an entire set of characters in a consistent style, including letters, numbers, punctuation marks, and special symbols. It is characterized by its specific weight, style, and overall aesthetic. The term is often used interchangeably with 'font,' although technically, a font refers to a specific size and style (e.g., 12-point bold) of a typeface.
A typewriter is a mechanical or electromechanical device used to produce printed characters on paper by striking a ribbon with a type element, typically used for writing compositions and documents.
A U-shaped recovery is a type of economic recovery characterized by a gradual decline followed by a slow, but steady rebound in economic growth, typically measured by Gross Domestic Product (GDP).
A U.S. citizen is any person born or naturalized in the United States and subject to its jurisdiction. This status affords certain rights, privileges, and responsibilities under U.S. law.
The U.S. Patent Office, responsible for providing legal protection to registered inventions, is a critical component of the U.S. innovation infrastructure.
A U.S. Savings Bond is a government bond issued by the U.S. Department of the Treasury designed to provide savings and investment options for American citizens.
UCITS are a popular investment structure within the European Union that allows for a single authorization from one EU member state to market the investment product throughout the EU. UCITS are mainly mutual funds and investment trusts that adhere to strict regulatory standards to protect investors.
UK Export Finance, also known as the Export Credits Guarantee Department, is the United Kingdom's export credit agency. It provides government financial support to help UK businesses succeed in the global marketplace.
UKFI was a limited company established by the UK government to manage its shareholding in banks that received state investment during the financial crisis of 2008.
UK GAAP refers to the practices followed by British accountants in preparing company accounts, governed by accounting standards, theoretical accounting concepts, and legal requirements. These are increasingly critical in determining taxable profits.
UK GAAP, or Generally Accepted Accounting Practice, refers to the framework of accounting standards and principles that accountants in the United Kingdom must follow to ensure financial statements are consistent and comparable.
An annual publication by the Office for National Statistics, the UK National Accounts, also known as the Blue Book, includes detailed figures on the gross domestic product and separate accounts of production, income, and expenditure.
An entity established in 2009 as the successor to the Association for Payment Clearing Services (APACS). UKPA manages payment clearing and overseas money transmission in the UK, providing services and facilities to four main operating companies.
An ultimate holding company, also known as an ultimate parent company, is a company that holds a dominating position over a group of firms, including those subsidiaries that act as immediate holding companies for their own subsidiaries.
Ultra vires is a Latin term meaning 'beyond the powers,' used to denote actions taken by officials or corporations that exceed the authority granted to them by law or constitutive documents.
Actions of a corporation that are not authorized by its charter and may therefore lead to shareholder or third-party suits.
Umbrella Liability Insurance is excess liability coverage that provides additional protection beyond the limits of a basic business liability insurance policy such as the Owners, Landlords, and Tenants Liability Policy.
An umbrella policy is an insurance policy providing additional liability coverage over and above the limits of a basic insurance liability policy. It is designed to provide extra protection.
A union that is not affiliated with the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). These unions operate independently, often with their own policies, leadership, and strategies.
The unamortized bond discount represents the difference between a bond's face value (par value) and the proceeds received from the bond's sale by the issuing company, less the portion that has been amortized over time.
The unamortized cost is the historical cost of a fixed asset minus the total depreciation or amortization applied to it up to a specified date. It represents the current book value of the asset in financial accounting.
The unexpensed portion of the amount by which the price paid for a security exceeded its par value with bonds or preferred stock, or its market value with common stock.
Unappropriated profit refers to the portion of an organization's profit that has not been distributed as dividends or allocated for a specific purpose. These profits remain retained in the company for future use.
Unappropriated retained earnings refer to the portion of a company's retained earnings that have not been earmarked for any specific purpose and can be used for general business activities. This is akin to regular retained earnings unless a portion has been set aside for particular uses.
An unauthorized strike, also known as a wildcat strike, occurs when employees cease work without the authorization of their union or outside the terms of the collective bargaining agreement. These types of strikes are typically spontaneous and are not sanctioned by the union leadership.
Economic growth in which certain sectors of the economy grow faster than others, causing economic dislocations or economically risky over-reliance on specific sectors.
An unbiased estimator is a statistical term referring to a method of estimating a population parameter, where the average of several random samples results in an estimate equal to the population parameter itself.
Unbundling refers to the separation of a business or its assets into distinct entities, generally achieved by selling off certain subsidiaries, business lines, or parts of a security. This strategic action can enable businesses to focus on core operations, optimize performance, and better realize underlying value.
In banking, uncollected funds refer to the portion of a bank deposit made up of checks that have not yet been collected by the depository bank. This means that payment has not yet been acknowledged by the bank on which a check was drawn. Typically, a bank will not allow a depositor to draw on uncollected funds.
An uncollectible account is a customer account that cannot be collected due to the customer's unwillingness or inability to pay. Such accounts may be written off as worthless after several collection attempts, although further collection efforts may continue.
An uncommitted facility represents a provisional agreement wherein a bank may lend funds to a company on a short-term basis, though it is not legally bound to extend the specified amount.
An unconsolidated subsidiary refers to a subsidiary undertaking that, while a subsidiary of a group, is not included in the consolidated financial statements of the group.
Uncontrollable costs are expenses that cannot be directly managed or influenced by a specific level of management within an organization. These costs are important for accurate performance measurement and often lead to differing opinions on their classification.
An uncovered option, also known as a naked option, refers to an option contract where the writer of the option does not hold the underlying security or the sufficient cash to cover the position, making it a high-risk strategy.
An undated security is a fixed-interest security that does not have a redemption date. These securities perpetually generate a set interest payment without a requirement for the principal to be returned at a specific future date.
Under-the-counter refers to illegal payments made for scarce merchandise or services, usually in excess of the stated price. These payments are a form of bribery and extortion.
In cost accounting, the situation where an insufficient amount of factory overhead was charged to the products manufactured.
Under-reporting is the improper failure to report accurate income on a tax return, leading to potential legal and financial consequences.
Under-Withholding refers to a situation where taxpayers have insufficient federal, state, or local income tax withheld from their wages, potentially resulting in tax liability upon filing returns and incurring penalties and interest.
In absorption costing, the circumstance in which the absorbed overhead is less than the overhead costs incurred for a period. This adverse variance represents a reduction of the budgeted profits of the organization.
Undercapitalization refers to the state of a company that lacks sufficient capital or reserves for its operational needs, often due to rapid growth. This situation can result in a profitable company struggling to convert earnings into cash to pay its debts.
A segment of the population that experiences prolonged economic deprivation and faces an array of sociological challenges that contribute to and perpetuate their disadvantaged status.
An underdeveloped country, also known as a Third World country, is a nation characterized by a low level of economic development, widespread poverty, low per capita income, and scarce social infrastructure. These countries often face challenges such as political instability, inadequate healthcare, and limited educational opportunities.
An underdeveloped country is characterized by a low standard of living, an economy primarily based on primitive technologies for farming and manufacturing, and limited industrialization.
People who are not fully employed according to their education, abilities, and experience. Underemployed individuals are not utilizing their full capabilities and talents, which often leads to frustration and disappointment.
Underestimation in the context of taxation occurs when taxpayers pay less tax than they owe, which can lead to underpayment penalties and is often linked to terms such as underpayment penalty and underwithholding.
The underground economy comprises economic activities that go undetected by taxing authorities, often involving barter or cash transactions. These activities include both illegal operations and those that would be legal if recorded.
The term 'underhand' signifies actions that are sly or deceitful, often with an element of secrecy and underhandedness.
An individual who has insufficient insurance coverage to fully compensate for losses in the event of life or property damage.
In finance, an underlying asset is the security, index, or other financial instrument that the value of a derivative is based on. Understanding the nature of the underlying asset is crucial for evaluating and managing the risk associated with derivatives.
Underlying debt refers to outstanding financial obligations secured by collateral, typically used in real estate and securities contexts, involving senior debt or debt of municipal government entities with broader credit responsibility.
An underlying futures contract is the specific futures contract that serves as the basis for an option on that future. For example, an option on a U.S. Treasury bond futures contract at the Chicago Board of Trade (CBOT) would have the Treasury bond futures contract as its underlying future.
An underlying mortgage, also known as a first mortgage, refers to the original mortgage on a property that remains in place when a wraparound mortgage is created.
An underlying security refers to the financial instrument (like stocks, bonds, commodities, or indexes) on which derivatives such as options, futures, or other securities are based. It is the asset that must be delivered when specific financial contracts, like put options or call options, are exercised.
Underpay refers to a scenario in which individuals receive wages that are considered insufficient or below the market value for the job or procedure they perform. This can be due to several factors, including market dynamics, organizational policies, or perceived worth.
The underpayment penalty, also known as the estimated tax penalty, is levied on taxpayers who do not withhold enough tax or fail to make sufficient estimated tax payments throughout the year.
Understandability is a core principle in financial reporting which ensures that financial information provided by a company can be comprehended by individuals with a reasonable knowledge of business and accounting.
An undertaking is any corporate body, partnership, or unincorporated association engaged in trade or business with the goal of earning a profit. Such entities are involved in economic activities and operate in various business sectors.
An 'undertone' refers to a subtle or subdued element in communication or expression, such as a subdued voice or a subtle suggestion. It can influence the underlying message and emotional impact.
