Monday, 2 January 2023

Glossary (7)

 Glossary

Tax-loss selling—selling just prior to year-end to realize losses for tax purposes 

Technical analysis—analysis of past security-price fluctuations using charts 

Tender offer—a cash bid to buy some or all of the securities of a target company 

Thrift conversion—the conversion of a mutual thrift institution to stock ownership 

Top-down investing—strategy involving making a macroeconomic forecast and then applying it to choose individual investments 

Torpedo stocks—stocks for which investors have high expectations and which are therefore vulnerable to substantial price declines 

Trader—a person whose job it is to buy and sell securities, earning a spread or commission for bringing buyers and sellers together 

Trading flat—available for sale or purchase without payment for accrued interest 

Treasury bills (T-bills)—noninterest-bearing obligations of the U.S. government, issued on a discount basis with original maturities ranging from three months to one year; the interest income from Treasury bills is the difference between the purchase price and par 

Treasury bonds (T-bonds) —U.S. government obligations with original maturities of ten years or more; interest is paid semiannually 

Treasury notes (T-notes) —U.S. government obligations with original maturities ranging from one to ten years; interest is paid semiannually 

Value - the worth, calculated through fundamental analysis, of an asset, business, or security 

Value investing—a risk-averse investment approach designed to buy securities at a discount from underlying value 

Value investment—undervalued security; a bargain 

Volume—the number of shares traded 

Window dressing—the practice of making a portfolio look good for quarterly reporting purposes 

Working capital—current assets minus current liabilities 

Writing call options—selling call options on securities owned 

Yield —return calculated over a specific period

 Zero-coupon bond—a bond that accrues interest until maturity rather than paying it in cash 

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