Money Market Definitions - Starting with T

Here is the list of terms associated with the money market, starting with alphabet T

 

TAKEOVER

A change in the controlling interest of a corporation. A takeover may be a friendly acquisition or a hostile bid. A hostile takeover is usually attempted through a public tender offer.

 

TAXABLE EQUIVALENT YIELD

The interest rate return which must be received on a taxable security to provide the holder the same after-tax return as that earned on a tax-exempt security.

 

TERM

The time during which interest payments will be made on a bond or certificate of deposit.

 

TOTAL RETURN

Return on an investment, taking into account capital appreciation, dividends or interest, and individual tax considerations adjusted for present value and expressed on an annual basis.

 

TRADE DATE

The actual date on which your shares were purchased or sold. The transaction price is determined by the closing Net Asset Value on that date.

  

TRANSACTION SLIP

A brief form to be filled at the time of additional purchases or redemption.

 

TRUSTEE

A person or a group of persons having an overall supervisory authority over the fund managers. They ensure that the managers keep to the trust deed, that the unit prices are calculated correctly and the assets of the funds are held safely.

 

TRUST FUND

The corpus of the Trust, unit capital and all property belonging to and i or vested in the Trustee.

 

TURNOVER

The extent to which the fund's portfolio is turned over during the course of a year. High turnover results in greater investment expenses and therefore in an erosion of the value of share assets.

 

TURNOVER RATE

A measure of the fund's trading activity calculated by dividing total purchases or sales of portfolio securities (whichever is lower) by the fund's net assets over a period of time.

 

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