Glossary of Financial Terms starting with Alphabet ‘T’

Glossary of ‘Financial Terms’ starting with Alphabet ‘T’, i.e. ‘Meaning’ or ‘Definition’ of Common and Unusual terms relating to Accounting, Auditing, Company Law, GST, Income Tax, Investments, etc., along with the ‘Context’ in which they are used.

Takeover panel

An acquirer who proposes to acquire shares through a mode which is not specifically covered under takeover regulations may seek exemption from the applicability of the provisions of the offer process by making an application. SEBI has constituted a panel consisting of independent persons to examine such applications which is called the Takeover Panel.


When a broker or advisor purchases or sells a security for their client(s) and then immediately does the same transaction in his/her own account. This is not illegal like front running, but is still considered to be unethical because the broker is usually placing a trade for his/ her own account based on what the client knows (like inside information).

Target Company

A Target company is a listed company i.e. whose shares are listed on any stock exchange and whose shares or voting rights are acquired/ being acquired or whose control is taken over/ being taken over by an acquirer.

Technical Position

Condition of the market created by various internal factors and opposed to external forces.

Tender Offer

Tender offer means an offer by a company to buy back its specified securities through a letter of offer from the holders of the specified securities of the company.

Thin markets

Characterized by relatively few transactions per unit of time and where price fluctuations are high relative to the volume of trade.


An advertisement placed in financial newspaper or magazine to announce the completion of a syndicated loan or a new issue of securities. It is called a tombstone because it consists of little more than a list of names and dates. The names are those of borrower (who pays for tombstone) and of the financial institutions which participated in the deal. They are ordered in strict seniority , the size of the typeface indicating their importance in the deal. Within the same rank, participants are listed strictly alphabetically. The more the tombstones there are, the less dead is the market.

Tracking error

When using an indexing or any other benchmarking strategy, the amount by which the performance of the portfolio differed from that of the benchmark.

Tracking Stock

A class of company share designed to “track” the performance of a particular division or subsidiary of a company, also sometimes known as a letter stock or targeted stock. A tracking stock is usually issued by a large (old) conglomerate when it feels that the value of a small (young) offspring is not being fully appreciated by the market.

Trade netting

A legally enforceable consolidation and offsetting of individual trades into net amounts of securities and money due between trading partners or among members of a clearing system. A netting of trades which is not legally enforceable is position netting.

Trading member

A member of the derivatives exchange or derivatives segment of a stock exchange who settles the trade in the clearing corporation or clearing house through a clearing member.

Transaction statement

The depository participant gives a Transaction Statement periodically, which will detail current balances and various transactions made through the depository account. If so desired, DP may provide the Transaction Statement at intervals shorter than the stipulated ones, probably at a cost.

Transfer Agents

An agent designated by the company to carry out the function of transfer of shares.

Transfer Forms

Forms which have to accompany the share certificate for effecting a valid transfer of ownership form the seller to the buyer.

Transfer Stamps

Under provisions of the Indian Stamp Act, the transfer deed for the transfer of shares is required to be stamped at the rate of 0.50 per Rs 100/- or part there of, calculated on the amount of consideration.


The buyer of the securities in whose favour the securities are bought to be registered is known as the Transferee.


The seller of the security is the transferor of the security.

Treasury Bills

A short term bearer discount security issued by governments as a means of financing their cash requirements. Treasury Bills play an important role in the local money market because most banks are required to hold them as part of their reserve requirements and because central bank open market operations undertaken in the process of implementing monetary policy are usually conducted in the treasury bill market.

Trust Deed

Detailed legal document which sets out in precise legal terms the rules under which a trust works, its aim, the fees and charges that are created, plus the responsibilities of the Manager and the Trustee. As per SEBI Debenture Trustee rules, trust deed is a deed executed by the body corporate in favour of the trustees named therein for the benefit of the debenture holders.

Trust Promoter

Person or company responsible for attracting investors into a unit trust or mutual fund.


Legal custodian who looks after all the monies invested in a unit trust or mutual fund.

Two Sided Market (U.S.)

The obligation imposed on market makers that they make both firm bids and firm offers in each security in which they deal.

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