A takeout loan in real estate refers to a long-term mortgage loan made to refinance a short-term construction loan. In the securities industry, takeout refers to the withdrawal of cash from a brokerage account, usually after a sale and purchase have resulted in a net credit balance.
Taking delivery refers to the acceptance of goods, commodities, or securities by the recipient, with documentation such as a bill of lading, reflecting the transfer and acknowledgment of receipt.
Technical analysis is a method of evaluating securities and commodities by analyzing statistics generated by market activity, such as past prices and trading volume. It uses charts and other tools to identify patterns and trends that may predict future price movements.
A technical rally refers to a short rise in securities or commodities futures prices within a general declining trend. This can occur due to bargain-hunting or traders identifying a support level where prices usually rebound.
A tender offer is a public proposal made to shareholders of a particular corporation to purchase a specified number of shares at a predetermined price. The offer generally contains specific conditions, such as the requirement that the offeror must obtain the total number of shares specified in the tender to proceed.
A thin market refers to a market for a security, commodity, currency, etc., where few transactions are occurring. Any substantial trade in such a market can have a direct and pronounced impact on prices, leading to heightened volatility.
The third market involves non-exchange-member broker-dealers and institutional investors trading exchange-listed securities over the counter (OTC).
An upward or downward price movement in a security's trades. Technical analysts watch the tick of a stock's successive up or down moves to get a feel of the stock's price trend.
A ticker symbol is a unique series of letters assigned to a security or company for trading purposes on a stock exchange. Ticker symbols provide a simplified way to quickly identify and interact with company stocks.
A tombstone ad is an advertisement placed in newspapers by investment bankers during a public offering of securities. It provides basic details about the issue and lists the underwriting group members involved in the offering in alphabetical groupings according to the size of their participation.
A trader is generally anyone who buys and sells goods or services for profit, also known as a dealer or merchant. In the context of investment, a trader refers to an individual who actively buys and sells securities for their own account.
A trading range is defined both in commodities and securities markets, encompassing the price limits within which a commodity or security is allowed to move during a trading day.
Transaction costs are the expenses incurred during the process of buying or selling investments. They are critical to consider as they can significantly impact the net gains from transactions.
Transaction Costs refer to the various expenses incurred when making a transaction, beyond the actual price of the goods or services exchanged. These can include research, bargaining, and enforcement costs, among others.
A transfer agent is an individual or firm responsible for maintaining records of a corporation’s shareholders, including names, addresses, and the number of shares owned. They handle the issuance and cancellation of stock certificates when shares are bought or sold.
A trend is a general direction of movement that can be observed in various fields such as technology, economics, fashion, and finance. In the context of securities, a trend refers to the long-term price or trading volume movements, either up, down, or sideways, that characterize a particular market, commodity, or security, and also applies to interest rates and yields.
A Trend Line is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trend lines are a visual representation of support and resistance in any timeframe and are used by technical analysts to chart the past direction of a security or commodity future. By identifying these trends, analysts can make informed predictions about future price movements.
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.
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.
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.
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.
In the contexts of insurance and investments, underwriting involves assuming risk in exchange for a premium or facilitating the issuance and resale of securities, respectively.
The difference between the amount paid to an issuer of securities in a primary distribution and the public offering price. It varies based on issue size, issuer's financial strength, security type, security status, and investment bankers' commitments.
The Uniform Gifts to Minors Act (UGMA) allows minors to receive gifts, such as money or securities, in a simple, irrevocable manner without the need for a guardian or trustee.
Unrealized profits or losses represent the gains or losses that have occurred but have not yet been actualized through the sale of an asset. These figures remain 'on paper' until the asset is sold, transforming them into realized profits or losses.
Warrants are securities offering the owner the right to subscribe for the ordinary shares of a company at a fixed date and price, and are also used in warehousing as proof for deposited goods.
A wash sale is a transaction where an investor sells a security at a loss and quickly repurchases the same or substantially identical security within a specific period. This rule prevents taxpayers from claiming a tax deduction for the loss.
Watered stock refers to shares of a company that are issued at a price much higher than their intrinsic value.
The term 'When Issued' (WI) refers to a transaction made conditionally on the basis that a security, although authorized, has not yet been issued or made available for trading.
A wire house is a national or international brokerage firm whose branch offices are linked by a communications system that allows for the rapid dissemination of prices, information, and research related to financial markets and individual securities.
Worthless securities are financial instruments that have no value. Ownership of worthless securities typically results in a capital loss for the investor.
The Yankee Bond Market involves dollar-denominated bonds issued in the United States by foreign banks and corporations. Issuers tap this market when conditions in the U.S. are more favorable compared to other international or domestic bond markets.
Yield spread refers to the difference in yields between various issues of securities, often related to issues with different credit qualities. It is a key metric in the bond market, comparing securities that don't share identical maturity and quality.
