T
Takeover Bid
An offer made to security holders of a company to purchase their voting
securities which, together with the offering individual's already owned
securities, will total over 20% of the outstanding voting securities of
the company. For federally incorporated companies, the equivalent requirement
is more than 10% of the outstanding voting shares of the target company.
Tax Bracket
Although income tax is paid by most wage or income earners, the rate
of income tax paid increases as income exceeds certain amounts, called
brackets.
Tax Credit
Tax credits reduce taxes payable to the same extent for all taxpayers,
regardless of their income level and marginal tax rate. Deductions from
taxable income, however, are more valuable as your income and tax rate
increases.
Tax Shelter
This is an investment that offers tax savings in some form, such as
immediate deductions, credits or income deferral.
T-Bill
Common term for a government treasury bill, which is a short-term government
debt issue.
Technical Analysis
A method of market and security analysis that studies investor attitudes
and psychology as revealed in charts of stock price movements and trading
volumes. This analysis may be used to assess possible future price action.
A deposit instrument most commonly available from chartered banks requiring
a minimum investment at a predetermined rate of interest for a stated
term. The interest rate varies according to the amount invested and the
term to maturity, but is competitive with comparable alternative investments.
A reduced interest rate usually applies if funds are withdrawn prior to
maturity.
Thin Market
A market in which there are comparatively few bids to buy or offers
to sell, or both. The phrase may apply to a single security or to the
entire stock market. In a thin market, price fluctuations between transactions
are usually larger than when the market is liquid. A thin market in a
particular stock may reflect lack of interest in that issue, or a limited
supply of the stock.
Time Limit Order
A client order that specifies the time during which it can be executed.
Time Value or Extrinsic Value
The amount that the current market price of a right, warrant or option
exceeds its intrinsic value. Intrinsic value is the amount by which the
market price of a security exceeds the price at which the warrant, right
or option may be exercised. The intrinsic value of a put is calculated
as the amount by which the market price of the underlying security is
below the exercise price.
Timely Disclosure
The obligation for companies to promptly release to the news media any
favorable or unfavorable corporate information which is of a material
nature. This obligation is imposed by the securities administrators on
companies. Broad dissemination of this news allows all investors to trade
the company's securities with the same knowledge about the company as
insiders.
Trader
1. Employee of an investment dealer who executes buy and sell orders
for the dealer and its clients either on a stock exchange or the over-the-counter
market. 2. The term is also used to describe a client who buys and sells
frequently with the objective of short-term profit.
Suspension of trading in a security while material news from the issuer
is being spread. A trading halt gives all investors equal opportunity
to hear the news and make any appropriate trade decisions.
Trading Units
Different par values make up trading units for the over-the-counter
market. For example, one trading unit of Government of Canada treasury
bills is $250,000 par value, while one trading unit of provincial bonds
and guarantees is $25,000 par value.
Transaction Date
The date on which the purchase or sale of a security takes place.
Transfer Agent
A trust company appointed by a company to keep a record of the names,
addresses and number of shares held by its shareholders. Frequently the
transfer agent also distributes dividend cheques.
Treasury Bills
Short-term government debt, usually issued in trading units of $250,000
and sold chiefly to large institutional investors. Treasury bills do not
pay interest but are sold at a discount and mature at par (100). The difference
between the purchase price and par at maturity represents the purchaser's
income in lieu of interest. In Canada such gain is taxed as interest income
in the purchaser's hands.
Treasury Shares
Authorized but unissued stock of a company, or previously issued shares
that have been re-acquired by the corporation.
Trustee
1. Usually a trust company appointed by the company to protect the security
behind the company's bonds and to make certain that all covenants of the
trust deed relating to the bonds are honored. 2. A person who holds property
and securities in trust for another person.
