FINANCIAL GLOSSARY








Below is a glossary of financial terms written by us.
Simply click on a term to access its definition.
[For a correct use of this glossary, please consult these "notes"]

puce T+3

A term used to define the date settlement of trades as being within three business days of the date of the trade itself.
In the context of a registered US public offering, it would mean that shares are issued and money is received three business days after the effective date of a registration statement.

puce Tag Along Agreement

[also called Co-sale or Take Along Right]
An agreement between the main stockholders of a company and the remaining stockholders, that they will not sell any of their stock in the company without giving the other investors the right to participate in the sale pro-rata to their holdings.
This is usual in venture capital investments.

puce Takedown Schedule

The schedule which outlines to the investor the dates and amounts relating to the transfer of his funds.

puce Takeover

Acquiring control of a corporation by stock purchase or exchange, either hostile or friendly.

puce Tangible Book Value

See Book Value per Share.

puce Tax Basis

See Basis.

puce Tax Shield

A strategy which is aimed at the reduction of income tax by utilizing possible tax deductions such as interest paid on debt.

puce Technology transfer

The movement of ideas, inventions and discoveries out of the research lab, through the patent office, and into the commercial sector.

puce Tender Offer

An offer to all or a large group of stockholders to purchase their shares on fixed terms.
The party making the offer customarily reserves the right to accept all, none, or a specific number of the shares presented for acceptance.

puce TER

[Total Expense Ratio]

puce Term Sheet

A short document summarising the principal financial and other terms of a proposed investment.
It usually is non-binding, but may impose some legal obligations on the investor and the company.
Similar to a letter of intent.

puce Third stage / Round

Funds which are made available to a company whose sales volume is increasing and which is breakeven or profitable.

puce Tippee

A person who receives material information that has not been made public about a public company.
See Tipper.

puce Tipper

A person who informs another person of material information that has not been made public relating to a public company.
In the USA, under the Security Exchange Act of 1934, the tipper is jointly liable with the tippeeand is subject to civil penalties or to jail.

puce Tombstone

A short printed announcement about a proposed or completed offering of registered securities, usually appearing in the financial section of newspaper or other publications.

puce Top Quarter

Comprises the funds with a performance equal or above the upper quartile point.

puce Track Record

Assessment of the experience and success of an institution participating in securities offerings, namely an investment bank, a corporation or just a manager.

puce Tracking Error

A measure of the difference between the risk of a fund and the risk of the benchmark.
Unlike volatility, it focuses on differences in a fund’s excess returns relative to its benchmark.
A fund with a tracking error of 5.00 or below has risk and return characteristics that are relatively close to its benchmark. A fund with a tracking error of 10.00 or above may be taking on significantly more risk than its benchmark.

puce Trade Sale

As far as venture capital is concerned the sale of a corporation or of parts of it to a strategic or industrial investor.

puce Trademarks

A distinctive name, symbol, motto, or design that legally identifies a company or its products and services, and sometimes prevents others from using identical or similar marks.

puce Transfer Agent/Registrar

The agent of a company responsible for the issuing of stock certificates, for the registration of stockholders' names and re-registration of new holders when a transfer of stock occurs.

puce Treasury Stock

Stock that has been reacquired by the issuing company, and has not been cancelled.
Has the status of issued but not outstanding stock.

puce Tresaury bond

puce TTC

[Time To Close]
Ultimate deadline for a financing intended to save a firm.

puce Turnaround

In a firm commitment underwriting, an investment bank that purchases an entire security issue or part of it for resale to investors in a public offer.
In a best efforts underwriting, an investment bank that acts as agent for the issuer in offering the securities to investors.

puce TWR

[Time Weighted Rate of Return]
A method to measure the performance of a portfolio, i. e. the change in the market value of the initial portfolio over a defined period of time assuming that all distributed revenues are reinvested.Aperiod of time aaaaaaaaaa A method A method to measure the performance of a portfolio, i. e. the icrease of the market value of the initial portfolio over a defined period of time, assuming that distributed income is reinvested.





 

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