Glossary
Not sure about the terminology? This is the place to find out what everything means.
T
T+
Refers to the settlement period that is allowed once a security has been traded. T+ 5 would mean that settlement will occur five business days after the transaction day.
Talisman
The old stock exchange computerised settlement system which was replaced by CREST.
Takeover
The purchase of one company by another. A takeover can be a friendly acquisition bid where the management would co-operate negotiating the best price, or it could be an unfriendly bid, where the management tries to use various defensive strategies to repel the bidder.
Tax year
This runs between 6 April and 5 April of the following year and is used for assessment of income tax and capital gains tax.
TechMARK
All listed technology companies from the FTSE 100 giants to the small are in the techMARK index.
Tender offer
An offer where potential investors are asked to stipulate the price per share that they are willing to pay.
Time spread
Option strategy, where an investor buys and sells Put Option and Call Option contracts with the same exercise price but with different expiration dates.
Time value
The amount by which an option's premium exceeds its intrinsic value.
Total Expense Ratio (TER)
Total Expense Ratio, or TER, measures the total costs of a fund investment and can be applied to fund structures such as Unit Trusts, OEICs, exchange traded funds and exchange traded commodities. Typically the TER will consist of the annual management charge (the fee that the fund company charges annually to manage the fund, typically commission paid to fund managers) plus 'other' charges incurred with running the fund. These other charges can consist of share registration fees, fees payable to auditors, legal fees, and custodian fees. The TER is calculated by dividing the total cost by the fund's total assets and is denoted as a percentage. It may vary from year to year.
Touch
The best prices available for a stock on the market, looking at all the market makers.
Tracker funds
Unit trusts which track the performance of a specific share index. Usually they invest in companies in the same proportion that they make up the index.
Trade
See 'bargain'.
Traded option
A right but not the obligation to buy or sell something at a fixed price at sometime in the future.
Trading channels
The various channels available to Barclays Stockbrokers clients for placing trades - personal telephone service, the Internet, and post.
Trading hours
The period of time - Monday to Friday (8.00am to 4.30pm) excluding bank holidays - when orders will generally be accepted.
Trailing Stop order
An order to buy/sell shares when the share price rises from its lowest price/falls from its future peak price by a specified number of pence. When buying, a Trailing Stop order is used to make an investment at a price which is relative to the lowest price of the share but only when an upward trend has been established. When selling, a Trailing Stop order is used to maximise the potential profit of a holding by selling relative to the peak price of the shares.
Transaction
An order to buy or sell a security.
Transfer forms
Forms needed to transfer ownership of securities from one owner to another
Treasury
The UK Government's finance department.
Trusts
A trust is a legal device for preserving and protecting assets.
Two way price
Simultaneous prices in a stock quoted by the market maker, the lower at which they are willing to buy and the higher at which they are willing to sell.
