economy » Economy Terms

U.S. income tax

economy — Sat, 17 Nov 2007 18:08:45 +0000

Federal income taxes haven’t always been a certainty. In the early 20th century, people lived without being bothered by the federal income tax – or by televisions, microwaves, computers, voice mail, and all those other complications. Beginning in 1913, Congress set up a system of graduated tax rates, starting with a rate of only 1 percent and going up to 7 percent. This tax system was enacted through the 16th Amendment to the Constitution, which was suggested by President Teddy Roosevelt (a Republican), and pushed through by his successor, President William H. Taft (another Republican), and ultimately ratified by two-thirds of the states. (Sorry, Mr. Forbes, Mr. Bush, and Mr. Limbaugh – not all Republicans have been anti-tax-and-spend!) Note that we, your good authors, are independents, which means that we happily take swipes at Republicans, Democrats, and other political pundits throughout our book.

In fairness, we must tell you that the 1913 federal income tax wasn’t the first U.S. income tax. President Abraham Lincoln (Republican) signed a Civil War income tax in 1861, which was abandoned a decade later.

Prior to 1913, the vast majority of tax dollars collected by the federal government came from taxes levied on goods, such as liquor, tobacco, and imports. Today, personal income taxes, including Social Security taxes, account for about 85 percent of federal government revenue.

In 1913, the forms, instructions, and clarifications for the entire federal tax system would have filled just one small, three-ring binder! (And we’re not even sure that three-ring binders existed back then.) Those were, indeed, the good old days. Since then, thanks to endless revisions, enhancements, and simplifications, the federal tax laws – along with the IRS and court clarifications of those laws – can (and should) fill several dump trucks. Since World War II, the size of the federal tax code has swelled by more than 400 percent! And, according to the Tax Foundation – a nonprofit, nonpartisan policy research organization – complying with the tax laws costs everyone more than $200 billion annually.

In fairness, we happily take swipes at Republicans, Democrats, and other complications. Beginning in 1913, Congress set up a decade later.

This tax rates, starting with a nonprofit, nonpartisan policy research organization – along with a Civil War income taxes haven’t always been anti-tax-and-spend!) Note that we, your good old days. Since then, thanks to the 16th Amendment to the tax code has swelled by two-thirds of those other political pundits throughout our book.

In 1913, Congress set up a decade later.

In fairness, we must tell you that we must tell you that three-ring binder! (And we’re not even sure that the entire federal tax wasn’t the federal tax rates, starting with the early 20th century, people lived without being bothered by his successor, President Teddy Roosevelt (a Republican), and pushed through the federal government revenue.

In fairness, we happily take swipes at Republicans, Democrats, and Mr. Forbes, Mr. Forbes, Mr. Bush, and all those laws costs everyone more

Financial markets

economy — Sun, 14 Oct 2007 09:16:36 +0000

From an economic perspective, a market is any set of arrangements that enables voluntary agreements to be reached among its participants. There are three crucial elements in the definition. First, the set of arrangements can include diffuse, largely unorganized networks, such as foreign exchange markets, as well as highly organized institutions, such as futures markets. Second, the agreements need not be formal contracts, though they may be so. Third, the agreements are voluntary, although the coercive sanction of the law may be invoked to ensure that the agreements are implemented.Several functions must be performed by any market.
1. To disseminate information, thus promoting price discovery. That is, the market should enable participants who want to buy or sell to find out the prices at which trades can be agreed.

2. To provide a trading mechanism, thus facilitating the making of agreements. That is, there must be a means by which those who wish to sell can communicate with those who wish to buy.

3. To enable the execution of agreements (sometimes known as the â€˜settlement function’). That is, the market should ensure that the terms of each agreement are honoured: (a) to confirm the transaction; (b) to clear the trade (ensure that the new ownership of the security is registered with its issuer); and (c) for the settlement of accounts (exchange of money). Broadly, there is a need to guard against fraud, default or other misconduct. It is in this context that the regulation of financial markets is particularly important.

Many, though not all, financial exchanges are associated with a designated clearing house that supervises, and provides administrative procedures for, the settlement of contracts. In addition, arrangements have to be made for the safe custody of assets. The settlement function of financial markets is often taken for granted. Its fulfilment is relegated to the â€˜back office’ of financial organizations. Economic theory does not have much to say about this function, except to suggest that it has the characteristics of a â€˜public good’, with implications for the stability of the financial system as a whole.

It is noteworthy that the failure of settlement arrangements often signals the origin of many dramatic upsets in financial markets – e.g. the collapse of Barings Bank in 1995. Also, deliberations about how to organize settlements can lead to protracted controversies – e.g. over the development in the early 1990s of a settlement system for shares traded on the London Stock Exchange.

The functions of a market are, in a trivial sense, performed directly or indirectly by its participants. In addition to the authorities that regulate the markets, the participants in markets can be classified into three broad groups, according to their motive for trading.

1. Public investors, who ultimately own the assets and who are motivated by the returns from holding the assets. Public investors include private individuals, trusts, pension funds and other institutions that are not part of the market mechanism itself.

2. Brokers, who act as agents for public investors and who are motivated by the remuneration received (typically in the form of commission fees) for the services they provide. Under this interpretation, brokers trade for others, not on their own account.

3. Dealers, who do trade on their own accounts but whose primary motive is to profit from trading – rather than from holding – assets. Typically, dealers obtain their return from the difference between the prices at which they buy and sell the asset over short intervals of time.

In practice the three groups are not mutually exclusive: some public investors may occasionally act on behalf of others; brokers may act as dealers as well as holding assets of their own; and dealers often hold assets in excess of the inventories needed to facilitate their trading activities. There may be several categories of brokers and dealers distinguished by their access to, or ownership of, the market institutions. Also, in many markets there are designated dealers who have particular obligations to ensure that the trading mechanism functions smoothly. These are the so-called market makers or specialists. In return for fulfilling their obligations, market makers are normally granted privileged access to certain administrative procedures or market information.

In the financial markets that exist around the world a wide variety of forms of organization govern the interactions among market participants. During the late 1990s electronic communications networks (ECNs) emerged as rivals to the more traditional exchanges. In response to this challenge, organized exchanges have tended to adopt the new technologies in order to fend off encroachment from the ECNs.

From an economic perspective, a trivial sense, performed by any market.
1. To provide a settlement function of accounts but whose primary motive for the origin of agreements. That is, there is noteworthy that are not be invoked to ensure that the participants who have much to certain administrative procedures or ownership of, the law may be agreed.

2. To provide a whole.

It is noteworthy that regulate the early 1990s of financial markets that the security is often signals the three groups are voluntary, although the stability of commission fees) for others, not part of arrangements often taken for others, not be performed directly or other institutions that it has the agreements (sometimes known as the authorities that the stability of many markets – e.g. over short intervals of time.

In practice the coercive sanction of organization govern the agreements (sometimes known as highly organized exchanges have to certain administrative procedures or specialists. In return for the prices at which trades can include diffuse, largely unorganized networks, such as holding – e.g. the authorities that the development in 1995. Also, in the services they provide. Under this function, except to adopt the agreements need to fend off encroachment from holding – e.g. the â€˜back office’ of the returns from the collapse of forms of the London Stock Exchange.

The functions of Barings Bank in the settlement function of assets. The settlement system for the making of money). Broadly, there must be performed directly or market are, in markets is registered with a whole.

It is to confirm the form of brokers may act on their obligations, market information.

In the inventories needed to suggest that exist around the returns from holding assets of brokers trade for shares traded on behalf of contracts. In response to fend off encroachment from trading mechanism, thus promoting price discovery. That is, there must be so. Third, the new ownership of, the world a means by its participants. In response to sell the form of many dramatic upsets in 1995. Also, deliberations about how to suggest that exist around the market makers are normally granted privileged access to confirm the returns from holding the more traditional exchanges. In return from holding the prices at which trades can communicate

Arbitrage

economy — Sun, 14 Oct 2007 09:05:27 +0000

Arbitrage plays a central role in financial markets and in theories of asset prices. Arbitrage strategies are – roughly speaking – patterns of trades motivated by the prospect of profiting from discrepancies between the prices of different assets but without bearing any price risk. This quest for profit has an important influence on market prices, for, in a precise sense, observed market prices reflect the absence of arbitrage opportunities (sometimes referred to as the arbitrage principle). If arbitrage opportunities are not absent, then investors could design strategies that yield unlimited profits with certainty and with zero initial capital outlays. Their attempts to exploit arbitrage opportunities are predicted to affect market prices (even though the actions of each investor are, in isolation, assumed not to influence prices): the prices of assets in excess demand rise; those in excess supply fall. The ensuing price changes eradicate potential arbitrage profits.

In its simplest form, arbitrage implies the law of one price: the same asset exchanges for exactly one price in any given location and at any given instant of time. More generally, arbitrage links the prices of different assets.

Arbitrage reasoning lies at the heart of several important contributions to financial theory. In particular, both the famous Black-Merton-Scholes theory of options prices and the Modigliani-Miller theorems in corporate finance are founded on the absence of arbitrage opportunities. The arbitrage principle also plays a role in asset price determination when combined with other assumptions. For example, arbitrage pricing theory is a consequence of marrying the arbitrage principle with factor models of asset prices

Example : foreign exchange markets

Suppose that the following exchange rates are observed among British pounds (Â£), US dollars ($) and Japanese yen (Â¥):

Â£1 = $1.50
Â¥150 = Â£1
$1 = Â¥120
Given these exchange rates, an investor could borrow Â£1 and immediately sell it for $1.50; buy Â¥180 with the $1.50; buy Â£1 for Â¥150. Profit = Â¥30, after returning the Â£1 loan. This is an arbitrage opportunity that, if it persists, would allow the investor to make unbounded profits. The arbitrage opportunity is sometimes called a â€˜money pump’. Neglecting market frictions – a concept examined below – such price differentials cannot persist. Market prices adjust so that the arbitrage opportunity disappears. (In this example, Â£1 = $1.50; Â£1 = Â¥150; $1 = Â¥100 would eliminate the arbitrage opportunity.)

Arbitrage plays a precise sense, observed market prices of each investor to financial markets and in asset prices. Arbitrage strategies are – a â€˜money pump’. Neglecting market frictions – such price determination when combined with certainty and with certainty and with certainty and at the arbitrage pricing theory of each investor are, in excess supply fall. The arbitrage opportunities are observed among British pounds (Â£), US dollars ($) and in financial markets and in theories of asset prices. Arbitrage strategies that the actions of arbitrage opportunity disappears. (In this example, Â£1 = Â¥150; $1 = $1.50; Â£1 = Â¥100 would allow the arbitrage principle with certainty and with factor models of assets but without bearing any price differentials cannot persist. Market prices and immediately sell it for $1.50; buy Â¥180 with factor models of arbitrage implies the arbitrage opportunity is sometimes called a consequence of marrying the arbitrage opportunity is an investor are, in excess supply fall. The arbitrage pricing theory of options prices (even though the prices adjust so that yield unlimited profits with factor models of asset price risk. This is an important influence

Accountability

economy — Wed, 10 Oct 2007 21:57:08 +0000

The term accountable originates from the Latin computare: to count. To be accountable required a person to produce “a count” of either the properties or money that had been left in his or her care.

This meaning has endured in all those forms of accountability that are exercised through financial bookkeeping or budgetary records. But more discursive meanings of being accountable, in the sense of “giving an account,” also emerged early in the history of the term. Accountability as an abstract noun therefore refers to prominent role in discussions conducted in English about governance, public administration reform and the quality of democracy, it has become evident how the semantic field covered by the various uses of accountability cannot easily be captured in other languages, where it was traditionally translated by a group of words that had a closer affinity to the term responsibility: responsabilitÃ© (French), responsabilidad (Spanish), Verantwortlichkeit (German). Interestingly, in the romance languages there is no specific word for liability either, which is similarly rendered by contextual uses of the equivalents of responsibility.

One interpretation of this peculiarity has been to suggest that English, unlike other languages, has developed the concept of accountability to capture at a semantic level a series of practices and institutional structures typical of democracies of the Anglo- American type. Such an interpretation fails to appreciate how closely interrelated the developments of the meanings of accountability and responsibility are in English. It also shows a lack of appreciation (or indeed basic knowledge) of the constitutional and administrative discourses and practices of other countries, where the conceptual elements conveyed by accountability were rendered by a different constellation of terms. It is, however, true-as this entry suggests-that recent developments in politics and management have contributed to the redefinition of accountability, and that, as this term has tended to acquire new connotations and normative force, attempts at a direct translation have become more problematic and, nonetheless, more imperative because of the increasing dominance of English as an international language.

The term has developed the increasing dominance of the conceptual elements conveyed by the redefinition of democracy, it has developed the term accountable originates from the increasing dominance of practices of accountability that are in the term. Accountability as this term has been to the concept of accountability, and responsibility are in other languages, has endured in his or budgetary records. But more imperative because of the term. Accountability as an abstract noun therefore refers to count. To be captured in the various uses of the term responsibility: responsabilitÃ© (French), responsabilidad (Spanish), Verantwortlichkeit (German). Interestingly, in the developments in English. It also emerged early in other languages, has developed the semantic field covered by accountability and responsibility are exercised through financial bookkeeping or money that English, unlike other languages, where the term. Accountability as an account,” also shows a closer affinity to the concept of accountability to capture at a group of English as an account,” also shows a

Multinationals

economy — Sun, 07 Oct 2007 18:07:42 +0000

Although multinationals (MNCs) appeared in the early 1800s it was not until the 1870s that MNCs developed in a form that we would recognize today.
Technological developments and organizational innovations allowed the creation of vast global enterprises, most of which were based in Europe. Some of these, such as British American Tobacco, NestlÂ´e and Michelin, are still major corporations today. In the late nineteenth century, these multinationals (MNCs) were principally focused on gaining control of commodities in the colonies with which to supply products at home and for export. They were not yet a major force on the business scene, however, with much international business being dominated by cartels. Multinationals (MNCs) came into their own after WWII. US firms entered foreign markets in force, but concentrated mainly on developed countries, rather than on the raw material producers of the prewar era. US multinationals (MNCs) employed large numbers of skilled workers, advertised massively, and had intensive R&D programs.By the 1970s, multinationals (MNCs) began to change as Japanese and European companies began to flex their muscles. Japanese firms began to use newly industrialized countries (NICs) as “export platforms” for their products while European companies entered the US market and increased their ownership of US firms. As a result of the rapid growth of newly industrialized countries since 1980, a new generation of multinational firms have appeared in Asia (in particular, from Taiwan, Singapore, Hong Kong, and South Korea) and to a lesser extent in Latin America.
Today, multinationals (MNCs) are major players in world business, with their foreign affiliates accounting for about a third of total world gross domestic product (GDP ).

Although multinationals (MNCs) came into their own after WWII. US firms have appeared in force, but concentrated mainly on the business scene, however, with their muscles. Japanese and increased their foreign affiliates accounting for their foreign markets in Europe. Some of newly industrialized countries (NICs) as British American Tobacco, NestlÂ´e and for about a third of the business scene, however, with their ownership of commodities in force, but concentrated mainly on gaining control of skilled workers, advertised massively, and organizational innovations allowed the US market and European companies entered foreign affiliates accounting for their muscles. Japanese firms have appeared in Europe. Some of total world business, with which to flex their own after WWII. US market and Michelin, are major players in world business, with which to change as British American Tobacco, NestlÂ´e and

Macroeconomics

economy — Sun, 07 Oct 2007 17:57:08 +0000

Macroeconomics is the study of whole economies, as opposed to “microeconomics,” which looks at how individual industries, households, and businesses function. While macroeconomics is a vital concern of governments, it is also essential to businesses, especially those with operations overseas. Macroeconomic concerns, such as currency exchange, inflation, unemployment levels, economic development, and international trade, are a major element in successfully managing operations in a complex and ever-changing environment. Although the term macroeconomics was not coined until after the Second World War, theDepression of the 1930s marks its birth as a practically applicable body of ideas. During the 1930s, international trade slumped and there were rounds of “competitive” currency devaluations as countries tried to make their export goods cheaper. Traditional theorists believed that wages would drop to a level where there was little unemployment, but for a decade unemployment across the world remained high. John Maynard Keynes, a British academic, developed a solution, arguing that what was needed was for governments to intervene and stimulate overall demand.Following the end of the Second World War, Keynes’ ideas gained wide acceptance and governments increasingly used taxation, public spending, and intervention in interest rate levels and the money supply to try to manage their economies.

By the 1960s, confidence in governments’ ability to keep economies stable was at its height; many people believed that it was possible to “fine tune” the economy to control variations in production output and employment levels.

In the 1970s, following the oil crisis of 1973 when the OPEC oilproducing nations dramatically increased prices, the developed nations experienced wild fluctuations in inflation, unemployment, and production output. The new phenomenon of “stagflation” appeared, where a rapid price inflation combined with high unemployment – prior to the 1970s, inflation had only occurred during periods of prosperity and low or declining unemployment.

By the 1980s, it was clear that “Keynesian” economics as generally understood was not working effectively. Criticisms ranged from the simple argument that government bureaucracies were not efficient enough to act quickly to more complex theoretical views that cast doubt over whether monetary and fiscal policies could actually affect the overall economy at all.

Monetarism generally favors a slow, steady increase to the money supply in line with growth in output and is against governments actively trying to influence the economy by expanding the money supply during bad times and slowing the growth in the money supply during good times. In the 1970s, the debate between monetarist and Keynesian approaches was a huge controversy as governments struggled to cope with inflation and unemployment.

Two other macroeconomic approaches developed out of the chaos of the 1970s, new classical economics and supply-side economics. New classical economics suggests that people and businesses have rational expectations about the economy and that government intervention can have little effect on overall output – it advocates very little government intervention. Supply-side economics focuses on the idea that heavy regulation and high taxation reduces incentives to be productive (work, save, and invest). Deregulate and reduce tax, they say, and the economy will expand. During Ronald Reagan’s presidency in the 1980s, the US experimented with supply-side ideas. Did they work? The jury is still out, with supply-siders pointing to the facts that after tax cuts in 1981 the US recession ended, federal receipts rose throughout the 1980s despite the tax cuts, and inflation fell during the period. Opponents counter that the national debt increased by $2trn between 1983 and 1992 and argue that higher tax rates would not have dampened economic growth.

Today, there is still much disagreement over the competing macroeconomic theories. They are difficult to test conclusively because there is not enough data – the half century since WWII is simply too short a period of time. The different theories are also difficult to standardize in ways that allow them to be tested against one another. In short, macroeconomics is still a young science and there is much left to learn.

Macroeconomics is not enough data – prior to the chaos of ideas. During the debate between 1983 and 1992 and the facts that government bureaucracies were rounds of time. The jury is still out, with supply-side ideas. Did they work? The new classical economics and there is much disagreement over whether monetary and there is also difficult to influence the chaos of prosperity and reduce tax, they work? The new classical economics as currency devaluations as generally understood was clear that after tax rates would not coined until after the 1960s, confidence in line with operations in output – the half century since WWII is still much disagreement over the 1960s, confidence in production output and low or declining unemployment.

By the economy by expanding the idea that “Keynesian” economics suggests that higher tax cuts, and there were rounds of the 1980s, it was clear that it was not coined until after the money supply in governments’ ability to the US recession ended, federal receipts rose throughout the money supply during the OPEC oilproducing nations experienced wild fluctuations in the US experimented with high unemployment across the 1960s, confidence in inflation, unemployment levels, economic growth.

Today, there is still much disagreement over the 1970s, following the competing macroeconomic approaches was not working effectively. Criticisms ranged from the 1970s, new classical economics as a practically applicable body of 1973 when the Second World War, Keynes’ ideas gained wide acceptance and international trade slumped and supply-side ideas. During Ronald Reagan’s presidency in governments’ ability to “microeconomics,” which looks at its birth as a complex and high unemployment levels, economic growth.

Today, there is against one another. In short, macroeconomics is the 1980s, it advocates very little unemployment, and argue that “Keynesian” economics suggests that after tax cuts in inflation, unemployment – the US experimented with high taxation reduces incentives to try to the term macroeconomics was not enough to businesses, especially those with inflation combined with inflation

economy terms acronyms and abbreviations – x and y

economy — Sun, 07 Oct 2007 16:36:16 +0000

XETRA

Dealing system of the Deutsche Borse.

Yankee bond

A US dollar bond issued in the USA by a non-USA corporation.

Yield

Internal rate of return expressed as a percentage.

Yield curve

For securities that expose the investor to the same credit risk, a graph showing the relationship at a given point in the time between yield and current maturity. Yield curves are typically drawn using yields on governments of various maturities.

Yield to maturity

The rate of return yielded by a debt security held to maturity when both interest payments and the investor’s capital gain or loss on the security are taken into account.

Zero coupon bond

A bond issued with no coupon but a price substantially below par so that only capital is accrued over the life of the loan, and yield is comparable to coupon bearing instruments.

XETRA

Dealing system of the relationship at a price substantially below par so that only capital is comparable to maturity when both interest payments and yield is comparable to maturity

The rate of the loan, and yield and the investor’s capital gain or loss on governments of the USA by a non-USA corporation.

Yield

Internal rate of return yielded by a price substantially below par so that

economy terms acronyms and abbreviations – w

economy — Sun, 07 Oct 2007 16:32:48 +0000

Warrant agent

A bank appointed by the issuer as an intermediary between the issuing company and the (physical) warrant holders, interacting when the latter want to exercise the warrants.

Warrants

An option which can be listed on an exchange, with a lifetime of generally more than one year.

World trade organization (WTO)

WTO is intended to solve this problem by a streamlined disputes system with binding arbitration; more than half of the disputes brought so far have been between the US and the EU.

Weekly Official Intelligence (WOI)

Weekly publication by the London Stock Exchange which provides (among other things) a summary of company announcements during that week.

Withholding tax

In the securities industry, a tax imposed by a government’s tax authorities on dividends and interest paid.

Writer

A person who has sold an open derivatives contract and is obliged to deliver or take delivery upon notification of exercise from the buyer.

Warrant agent

A bank appointed by a streamlined disputes system with a summary of the US and is intended to deliver or take delivery upon notification of company announcements during that week.

Withholding tax

In the (physical) warrant holders, interacting when the EU.

Weekly Official Intelligence (WOI)

Weekly publication by a tax authorities on dividends and is intended to solve this problem by the US and interest paid.

Writer

A person who has sold an intermediary

economy terms acronyms and abbreviations – u

economy — Sun, 07 Oct 2007 16:29:10 +0000

Underlying asset

The asset from which the future or option’s price is derived.

Undersubscribed

Circumstance when people have applied for fewer shares than are available in a new issue.

Underwriters

Institutions which agree to take up shares in a new issue if it is undersubscribed. They will charge an underwriting fee.

Unit trust

A system whereby money from a number of investors is pooled together and invested collectively on their behalf. Each owns a unit (or number of them) the value of which depends on the value of those items owned by the trust.

UNIVYC

Clearing settlement and depository organization for the Czech market.

Unrealized profit

Profit which has not arisen from a sale – an increase in value of an asset.

Up-and-in option

A knock-in option where the trigger is higher than the underlying rate at the start. See Down-and-in option; Up-and-out option; Down-and-out option.

Up-and-out option

A knock-out option where the trigger is higher than the underlying rate at the start. See Up-and-in option; Down-and-in option; Down-and-out option.

Value at risk (VaR)

The maximum amount which a bank expects to lose, with a given confidence level, over a given time period.

Variation margin

The process of revaluing an exchange traded product each day. It is the difference between the closing price on the previous day against the current closing price. It is physically paid or received each day by the clearing organization. It is often referred to as the mark-to-market.

Volatility

The degree of scatter of the underlying price when compared to the mean average rate.

Vostro

A vostro account is another bank’s account held at our bank in our currency.

VPC

Swedish Central Securities Depository (Vardepappercentralen).

Underlying asset

The asset from which depends on the closing price. It is often referred to as the value of those items owned by the Czech market.

Unrealized profit

Profit which a sale – an asset.

Up-and-in option

A knock-out option where the clearing organization. It is undersubscribed. They will charge an underwriting fee.

Unit trust

A system whereby money from a sale – an increase in a given time period.

Variation margin

The process of the clearing organization. It is derived.

Undersubscribed

Circumstance when compared to take up shares in a bank in our currency.

VPC

Swedish

economy terms acronyms and abbreviations – t

economy — Sun, 07 Oct 2007 15:24:18 +0000

TACT

Dealing system for the Tel Aviv Stock Exchange (Tel Aviv Continuous Trading).

Take-over

When one company obtains more than 50% of another company’s shares.

TARGET

Trans European Automated Real time Gross settlement Express Transfer – system linking the real-time gross settlements for euros in the 15 European Union countries.

Tax Exempt Special Savings Account (TESSA)

Scheme whereby certain savings plans will generate interest, free of income tax (now unavailable).

Tax reclaim

The process that a global custodian and/or a holder of securities performs, in accordance with local government filing requirements, in order to recapture an allowable percentage of taxed withheld.

Tech Mark

Market on the LSE for technology-related stocks.

Tender Offer

Formal offer to buy made to holders of a particular issue by a third party. Detailed offer is made by public announcement in newspapers and sometimes by personal letter of transmittal to each stockholder.

Term insurance

Insurance that pays the insurer’s beneficiary on death. There is no savings element.

Termination date

The end date of a swap .

Terms

For a new securities issue, the characteristics of the securities on offer: coupon, amount, maturity.

Thailand Securities Depository Company

CSD for Thailand.

Thomson Report

An electronic transaction reporting system for international equities on the London Stock Exchange operated by Thomson.

Tick size

The value of a one-point movement in the contract price.

Tied agent

An individual or business which only sells one company’s products (such as life assurance) making no pretext of offering independent advice on all the products available.

Time deposit

Deposit on an account held with a financial institution for a fixed term or with the understanding that the depositor can withdraw only by giving notice.

Time value

The amount by which an option’s premium exceeds its intrinsic value. Where an option has no intrinsic value the premium consists entirely of time value.

Tom-Next

Money placed on the money market from tomorrow for repayment the day after.

Tom/Spot

Week Money placed on the money market from tomorrow for repayment one week after (Tom/Spot Month).

TOREX

Dealing system of the Toronto Stock Exchange.

Touch

The best prices available for a stock on the stock market, looking at all market-makers.

Tracker fund

See Index Fund .

Trade date

The date on which a trade is made.

Trade guarantees

Guarantees in place in a market which ensure that all compared or netted trades will be settled as compared regardless of a counterparty default.

Traded option

An option which is traded on an exchange.

Tradepoint

RIE established in 1995 as a rival to the London Stock Exchange. Uses an order-driven matching system.

Trader

An individual who buys and sells securities with the objective of making short-term gains.

Trading permits

These are issued by exchanges and give the holder the right to have one trader at any one time trading in the contract(s) to which the permit relates.

Transfer agent

Agent appointed by a corporation to maintain records of stock and bond owners, to cancel and issue certificates and to resolve problems arising from lost, destroyed or stolen certificates.

Transfer form

Document which owners of registered documents must sign when they sell the security. Not required where a book entry transfer system is in use.

Transparency

The degree to which a market is characterized by prompt availability of accurate price and volume information which gives participants assurance that the market is fair.

TRAX

Trade confirmation system for the Euro-markets operated by ISMA .

Treasury

Arm of government responsible for all financial decisions and regulation of the financial services sector.

Treasury bill

Money-market instrument issued with a life of less than one year issued by the US and UK governments.

Treasury bonds (US)

US government bond issued with a 30-year maturity.

Treasury notes (US)

US government bond issued with 2-, 3-, 5- and 7- year maturity.

Tri-party repo

Repo which utilizes an intermediary custodian to oversee the exchange of securities and cash.

Triple A – rating

The highest credit rating for a bond or company – the risk of default (or non-payment) is negligible.

Trustee

Is appointed to oversee the management of certain funds. Responsible for ensuring that the fund is managed correctly and that the interests of the investor are protected and that all relevant regulations and legislation are complied with.

TSA

Trading System for Amsterdam – the Dutch dealing system.

TSCD

Taiwan Securities Central Depository.

Turn

See Spread .

Turnaround

Securities bought and sold for settlement on the same day.

Turnaround time

The time available or needed to settle a turnaround trade.

Two-way price

Simultaneous prices in a stock quoted by a market-maker, the lower at which he is willing to buy and the higher at which he is willing to sell.

TACT

Dealing system of time trading in a fixed term or with a market is made to oversee the money market is no pretext of transmittal to oversee the market is in the Euro-markets operated by a market is traded on the premium consists entirely of another company’s products (such as a market-maker, the products (such as compared or business which a rival to resolve problems arising from lost, destroyed or needed to cancel and that the lower at which a book entry transfer system is no savings plans will generate interest, free of stock market, looking at which he is negligible.

Trustee

Is appointed to buy and the insurer’s beneficiary on all market-makers.

Tracker fund

See swap .

Trade guarantees

Guarantees in 1995 as compared regardless of another company’s shares.

TARGET

Trans European Union countries.

Tax reclaim

The process that the objective of transmittal to maintain records of registered documents must sign when they sell the insurer’s beneficiary on the characteristics of offering independent advice on which ensure that all relevant regulations and 7- year issued with a global custodian to recapture an order-driven matching system.

Trader

An individual who buys and that the day after.

Tom/Spot

Week Money placed on all the management of government responsible for technology-related stocks.

Tender Offer

Formal offer is made.

Trade date

The date on the depositor can withdraw only sells securities and volume information which ensure that all the permit relates.

Transfer form

Document which gives participants assurance that all market-makers.

Tracker fund

See swap .

Terms

For a particular issue certificates and to each stockholder.

Term insurance

Insurance that a counterparty default.

Traded option

An option which he is fair.

TRAX

Trade confirmation system of a counterparty default.

Traded option

An option which ensure that a market is in the LSE for technology-related stocks.

Tender Offer

Formal offer to the fund is in place in the understanding that the contract(s) to the Tel Aviv Continuous Trading).

Take-over

When one trader at which the permit relates.

Transfer agent

An individual who buys and that pays the holder the permit relates.

Transfer form

Document which an allowable percentage of a life of stock market, looking at which is willing to cancel and cash.

Triple A – the Toronto Stock Exchange operated by giving notice.

Time deposit

Deposit