Investment Glossary

Welcome to Firstrade’s stock trading terms glossary. Do all the research you want. Use this glossary to look up the definition of any financial term.
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The acquisition of control over a corporation by another company, either through hostile or friendly means.

Target Fund

A mutual fund containing bonds that all mature in a single year, giving the entire fund a terminal maturity in that year.

Tax Anticipation Bill

A short-term security similar to a T-bill that is accepted at par in payment of corporate federal taxes.

Tax Anticipation Note

A municipal note issued in anticipation of revenues from a future tax.

Tax-Exempt Bonds

Municipal securities whose interest is exempt from federal income tax.


See Treasury Bills.


See Treasury Bonds.

Technical Analysis

A method of evaluating securities by relying on market data, such as price charts and volume to predict future market trends. It is believed that investor psychology has a significant influence on the market, creating patterns that can be used to estimate whether the price of a security will rise or fall. In contrast to fundamental analysis, understanding of a company's intrinsic value is not necessary for technical analysis.

Tender Offer

The offer made by one company or individual for shares of another company, in the form of cash or stock.


Duration since the current manager took over the fund.

Term Maturity

Bonds of an issue that mature on the same date.

Term Structure of Interest Rates

A graph representing the yield to maturity of Treasury securities at identified years of maturity.


A digital scrolling display showing prices and volume of traded securities.

Tick Indicator

An indicator of market trend, based on the number of stocks whose last trade was on an uptick or a downtick.

Time Horizon (Investment Horizon)

The expected length of time an investor will allow to meet financial goals.

Time Value

The portion of an option's premium that is attributed by the amount of time remaining until the expiration date of the option contract.


Treasury Inflation-Protected Security. A security identical to a treasury bond except that principal and coupon payments are adjusted to account for inflation.

Total Assets

Total sum of current assets plus total long term assets.

Total Debt-to-Equity Ratio

A capitalization ratio calculated as current liabilities plus long-term debt divided by shareholders' equity.

Total Liabilities

Accounting term referring to total current liabilities plus long-term debt and deferred taxes.

Total Return

The price change (capital gains) plus dividend return for a stock over the last year.

Total Return (Mutual Funds)

The combined return of a fund, including distributed and undistributed income and capital gains after taking into account all fees and expenses.

Total Revenue

Total sales and other revenue for a specific period.


A transaction involving one party buying a security from another party.

Trade Confirmation

A verification with information concerning a transaction, sent to the client on or before the first business day following the trade date.

Trade Date

The date on which a trade occurs. Settlement date is 2 business days after the trade date.

Trading Range

The difference between the high and low prices at which a security was traded during a period of time.

Trailing P/E Ratio

The ratio of a stock's latest closing price divided by last reported annual earnings per share.


The process by which securities are reregistered to new owners.

Transfer Agent

An agent employed by a corporation or mutual fund to maintain a record of share ownership and transactions.


Debt obligations issued by the U.S. Department of Treasury, so interest and principal is guaranteed by the U.S. Government. Income from Treasuries is taxable at the federal level, but exempt from state and local taxes.

Treasury Bills (T-Bills)

Government issued negotiable debt obligation with maturity in one year or less. T-Bills are purchased at a discount to the full face value which is payable when they mature. T Bills are issued for a minimum of $10,000 with $1,000 increments thereafter.

Treasury Bonds (T-Bonds)

Government issued negotiable debt obligation that mature in 10 to 30 years. Interest is paid semiannually and they can be purchased in denominations of $1,000 or multiples thereof.

Treasury Direct

The program which allows investors to purchase new issues of Treasury bills, notes, and bonds directly from the Federal Reserve.

Treasury Notes (T-Notes)

Government issued debt security that pays interests semiannually, maturing in two to ten years.


See Arms Index.

Trust Indenture

A written agreement between a corporation and its debt holders stating interest rates, maturity dates, collateral, etc.

Turnover Ratio

A measure of a how frequently a fund's portfolio is traded, expressed as a percentage. For example, a fund with a 50% turnover generally changes the composition of approximately half the portfolio each year.


The classification of an option contract as either a put or a call.