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Takeover
An offer made to the shareholders of a company by an individual or organisation in an attempt to gain control of that company. A welcome takeover bid is usually known as a merger. However if the bid is unwelcome it is known to be "hostile", resulting in a takeover battle.
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Talon
The last portion of a sheet of coupons from a bearer bond. The talon is presented to the paying agent in exchange for a new sheet of coupons.
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Tap stock
A new Gilt which is not fully sold at the time of its issue. The unsold bonds are subsequently sold on an "as required" basis.
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Taper Relief
Historically this was an allowance deducted from a capital gain based on the period of ownership of an asset from the later of the date of actual acquisition or April 1998.
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Tax Year
The tax year runs from 6 April to the following 5 April.
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Tender Offer
1. An offer for sale of new securities where the price is not fixed, but investors are invited to tender at prices of their choice, usually above a stated minimum price.
2. 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.
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Theoretical value
Another term for fair value of a futures or options contract.
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Through the Market (Gilts, LIBOR etc.)
A situation where the yield on a bond is lower than that on existing comparables or benchmarks.
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Time value
The portion of an options price that is not its intrinsic value.
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Touch
The best prices available for a stock on the stockmarket, looking at all market makers. (See Yellow Strip)
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Tracker Fund
A unit trust that invests in the companies which comprise a Stock Exchange index so as to follow the movements of the index.
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Tranche (French: slice)
A further issue of an existing security.
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Tranchette
A relatively small amount of an existing Gilt, issued direct to the market. Sometimes known as a Taplet.
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Transfer Form
A deed that is used to transfer property from one person to another. On the London Stock Exchange a transfer form has to be signed by the seller of registered securities to legalise the transaction.
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Treasury
The UK government department responsible for the country's financial policies and management of the economy. The First Land of the Treasury is the Prime Minister, but the Treasury is run by the Chancellor of the Exchequer.
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Trustee
A person or organisation who is the owner of assets held in trust. They are responsible for safeguarding the assets, monitoring compliance with the trust deed and the activities of the trust manager.
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Turn
See Spread.
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Two-way Price
Simultaneous prices in a stock quoted by a market maker, the lower at which he is willing to buy stock and the higher at which he is willing to sell stock.