T

Tap stocks

UK Government stocks which the government broker will supply at a given price. The price chosen provides a means of influencing interest rates in general.

Tender offer

In an offer by tender, buyers of shares specify the price at which they are willing to purchase.

Termine price

Italian bond market forward price.

Theta

The measure of the change in an option's premium given a change in the option's time until expiration. Equal to the change in the option's premium divided by the change in time to expiration.

Third market

In the US, the trading of exchange-listed securities on the OTC market by non-exchange member broker-dealers and institutional investors.

Tick

A minimum change in price, up or down.

Tick size

This is the minimum price movement for a futures contract.

Ticker symbol

Characters that identify a financial instrument on an exchange ticker.

Time value

That part of an option premium which reflects the length of time remaining in the option prior to expiration. The longer the time remaining until expiration, the higher the time value.

Total return index

An index that calculates the performance of a group of stocks assuming that dividends are re-invested into the index constituents. For the purposes of the index calculation, the value of the dividends are re-invested in the index on the ex-dividend date.

Touch

The best buying and selling prices available from a market-maker on SEAQ and SEAQ International in a given security at any one time.

Tracker

See Exchange traded funds (ETFs)

Trade date

The date on which a trade occurs.

Traded options

Transferable options with the right to buy and sell a standarised amount of a security at a fixed price within a specified period.

Trading halt

The suspension of trading in a security while material news from the issuer is being disseminated. A trading halt generally lasts 30 minutes and gives all investors equal opportunity to evaluate news and make buy, sell, or hold decisions on that basis.

Trading range

The range of prices that have been traded over a particular period.

Traditional options

Traditional options cannot be traded and are offered by 3 market-makers acting as principals.

Transaction

The buying or selling of securities resulting from the execution of an order.

Transfer

On the London Stock Exchange, the form signed by the seller of a security authorising the company to remove his name from the register, and substitute that of the buyer.

Transparent market

The degree to which trade and quotation information is available to the public on a current basis.

Treasury bills

Short-term obligations of a government issued for periods of one year or less. Treasury bills do not carry a rate of interest and are issued at a discount on the par value. Treasury bills are repaid at par on the due date.

Treasury bonds

Government obligations with maturities of 10 years or more.

Treasury notes

Government obligations with maturities greater than one year but less than 10 years.

Treasury stock

Previously issued stock that has been repurchased by, or donated to, or otherwise reacquired by the issuing firm. Treasury stocks pay no dividends and have no voting privileges.

Triple-witching

The simultaneous expiry of index futures, index options and individual stock options.

Turnover

The total money value of securities traded, as calculated by multiplying price by the number of securities traded.