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You are Here : Home > Investor Education > Glossary

Glossary to investment terminology : T

 
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Takeover
This is when one company makes a bid to acquire control over another company. It can either be hostile or friendly.

Target Price
When an investor has bought a share, usually he has a higher price in mind which he expects the share to reach in order to sell. This is the target price.

Term to Maturity
This is the time between when a bond is issued and when it matures, at which time the issuer must redeem the bond and pay the principal (face value). Typically, a longer term to maturity has a greater yield and vice versa.

Thin Market
A thin market is when there are comparatively few bids to buy or offers to sell, or both. Since only a few transactions take place in a thin market, the prices tend to be more volatile.

Trade Volume
This is the total number of shares of a company that are traded during a given period, usually a day. The term is also used to refer to the total number of shares transacted in a stock exchange during a given period, usually a day.

Trading Floor This is the arena in a stock exchange where trading activities are conducted. It is also referred to as the pit of the exchange.

Trading Halt
This is a temporary suspension of trading in the shares of a particular company at the stock exchange. Order imbalances or unusual activity related to a share's price or regulatory reasons can bring about a trading halt.

Trading Session This is one day of business trading at the stock exchange, from the opening bell to the closing bell.

Treasury Bill (T-Bill)
A treasury bill is a short term debt obligation with a maturity of one year or less, issued and fully guaranteed by the Kenyan Government, payable to the bearer. Treasury bills are sold on a discount basis so that the yield is the difference between the purchase price and the face value. Example; you may buy a treasury bill with a face value of KES 100,000 at a discounted price of KES 95,000. The yield to you is the KES 5,000 difference. T-bills offer the government short term financing.

Treasury Bond (T-Bond)
A treasury bond is a fixed interest debt obligation with a maturity of one year or more issued and fully guaranteed by the Kenyan Government, payable to the bearer. Treasury bonds pay a fixed interest every six months called the coupon.

Trust
This is a legal arrangement where an individual (the trustor) gives fiduciary control of property to a person or institution (the trustee) for the benefit of beneficiaries. A living trust is one that is in effect during the trustor's lifetime whereas a testamentary trust is created through the will of a deceased person.

Turnover This is the total number of shares sold in the stock market during a given period of time, usually a day. It is also referred to as the market turnover.