Archives for 2010

Theoretical Futures Price

Theoretical Futures Prices It is a theoretical equilibrium price of futures; also known as the fair price. Random Finance Terms for the Letter T Term Trust Terminal Value Terms of Sale Terms of Trade The Global Dow Theoretical Futures Prices Theoretical Spot Rate … [Read more...]

Theoretical Spot Rate Curve

Theoretical Spot Rate Curve It is the curve created as a theoretical exercise, in application to the yields of real traded debt instruments of the Treasury. This is a theoretical exercise, as there does not exist any zero-coupon debt issued by Treasury for a period greater than 1 … [Read more...]

Theta

Theta This is the ratio of the price of an option with decrease in expiration time. Also known as time decay. Random Finance Terms for the Letter T Term Trust Terminal Value Terms of Sale Terms of Trade The Global Dow Theoretical Futures Prices Theoretical Spot … [Read more...]

The World Bank

The World Bank An international bank built with the aim of providing aid and assistance to developing countries. Random Finance Terms for the Letter T Term Trust Terminal Value Terms of Sale Terms of Trade The Global Dow Theoretical Futures Prices Theoretical Spot … [Read more...]

Thin Market

Thin Market It’s a market characterized by low volume of trading, low instruments liquidity and a wider gap between the bid and the ask price/quote. Random Finance Terms for the Letter T Term Trust Terminal Value Terms of Sale Terms of Trade The Global … [Read more...]

Thinly Traded

Thinly Traded That, which is traded less and infrequently. Random Finance Terms for the Letter T Thinly Traded Third Market Three Phase DDM Threshold for Refinancing Throughput Agreement Tick Tick-Test Rules Tight Market Tilted Portfolio Time Decay … [Read more...]

Third Market

Third Market Trading of the exchange listed instruments in the OTC market. Random Finance Terms for the Letter T Thinly Traded Third Market Three Phase DDM Threshold for Refinancing Throughput Agreement Tick Tick-Test Rules Tight Market Tilted Portfolio Time … [Read more...]

Three Phase DDM

Three Phase DDM It is a type of dividend discount model (DDM). In this, based on the lifecycle, transition, growth or maturity phase, the expected dividend rate applied is changed. Random Finance Terms for the Letter T Thinly Traded Third Market Three Phase … [Read more...]

Threshold for Refinancing

Threshold for Refinancing It is the point when the weighted average coupon of a mortgage based security is at a particular level, where the house owners can be got to refinance their current mortgage to get lower rates through a new mortgage. It is usually reached when weighted … [Read more...]

Throughput Agreement

Throughput Agreement It is a contract for delivery, production or output of a certain type of product in a given period from a specified facility. For e.g. a contract which requires a certain amount of crude to be delivered through a specific pipeline. Random Finance Terms … [Read more...]

Tick

Tick It is the smallest change that can happen in a security’s price. Random Finance Terms for the Letter T Thinly Traded Third Market Three Phase DDM Threshold for Refinancing Throughput Agreement Tick Tick-Test Rules Tight Market Tilted Portfolio Time Decay … [Read more...]

Tick Indicator

Tick Indicator It is an indicator of the stock market based on how many stocks were uptick and downtick in the last trade. It is often used as a representative of market sentiment and gives an impression of the trend of the market. Random Finance Terms for the Letter … [Read more...]

Tick-Test Rules

Tick-Test Rules These are the rules imposed by the SEC on a short sale execution to prevent the stock from being destabilized, especially when its price is on the fall in the market. These rules say that a short sale can be executed only when: 1. The price at which the stock is … [Read more...]

Tight Market

Tight Market Opposite of thin market. It is characterized by high trade volume, lesser gaps between the bids and ask price/quote and very active trading. Random Finance Terms for the Letter T Thinly Traded Third Market Three Phase DDM Threshold for … [Read more...]

Tilted Portfolio

Tilted Portfolio It is an indexing strategy (generally in active management), which focuses on a specific sector of industry, some select economic factors like inflation and rates of interest, or some select sector performance parameters such as dividend yield, P/E ratios, momentum … [Read more...]

Time Decay

Time Decay See ‘theta’ definition. Random Finance Terms for the Letter T Thinly Traded Third Market Three Phase DDM Threshold for Refinancing Throughput Agreement Tick Tick-Test Rules Tight Market Tilted Portfolio Time Decay … [Read more...]

Time Deposit

Time Deposit It is a time bound deposit in a financial institution, which pays interest on the deposited money. Random Finance Terms for the Letter T Time Deposit Time Draft Time Premium Time Until Expiration Time to Maturity Time Value of an Option Time Value of … [Read more...]

Time Draft

Time Draft Payment request at a future date as stated. Random Finance Terms for the Letter T Time Deposit Time Draft Time Premium Time Until Expiration Time to Maturity Time Value of an Option Time Value of Money Time-Weighted Rate of Return Times-Interest-Earned … [Read more...]

Time Premium

Time Premium It is the difference between the option value and the intrinsic value of the option. The option value more than the existing exercise value represents the risk associated with underlying asset, the quantity of riskless return and the control of optionholder till the … [Read more...]

Time Until Expiration

Time Until Expiration Also known as the time to maturity. It is the time left before the contract expires. Random Finance Terms for the Letter T Time Deposit Time Draft Time Premium Time Until Expiration Time to Maturity Time Value of an Option Time Value of … [Read more...]