Third Party Notice - A provision that lets you name someone who the insurance company would notify if your coverage is about to end because the premium hasn't been paid. This can be a relative, friend, or professional such as a lawyer or accountant, for example.

Ticker - A telegraphic system that continuously provides the last sale prices and volume of securities transactions on exchanges. Information is either printed or displayed on a moving tape after each trade.

Time Value of Money - A dollar received today is worth more than a dollar received in the future, because today's dollar can earn interest up to the time the future dollar is received. Conversely, a dollar to be received in the future is worth less than a dollar received today because (1) inflation between now and when the future dollar is received will reduce the purchasing power of that future dollar, and (2) the future dollar cannot earn interest until it is received. Therefore, provided it can earn interest, any amount of money is worth more the sooner it is received.

For example, assuming a 5% interest rate, $100 invested today will be worth $105 in one year. On the other hand, $100 received one year from now is only worth $95.24 today, at the same 5% interest rate.

Trade - A transaction in which one party buys a stock, bond or other investment from another party. Once a trade is consummated, it is considered "done" or final.

Total Debt Service Ratio - A debt service measure that financial lenders use as a rule of thumb to give a preliminary assessment of whether a potential borrower is already in too much debt. More specifically, this ratio shows the proportion of gross income that is already spent on housing-related and other similar payments.
Receiving a ratio of less than 40% means that the potential borrower has an acceptable level of debt.

Trader - Individuals who buy and sell for their own accounts for short-term profit. Also, an employee of a broker/dealer or financial institution who specializes in handling purchases and sales of securities for the firm and/or its clients. 

Trading floor - The floor where trading activities are conducted. Trading floors are found in the buildings of various exchanges, such as the New York Stock Exchange and the Chicago Board of Trade.  These floors represent the area where traders complete the buying or selling of an asset.  

The trading floor is also referred to as "the pit" of an exchange, due to the hectic nature of the area. However, with the advent of electronic trading platforms, many of the trading floors that once dominated market exchanges have started to disappear as trading has become more electronically based.

Trading floors can also be found in brokerages, investment banks and other companies involved in trading activities. In this case, it refers to the physical office location that houses the trading division, which can complete transactions over the internet or telephone

Trading post - The structure on the floor of the New York Stock Exchange at which stocks or options are bought and sold.

Transfer - This term may refer to two different operations. For one, the delivery of a stock certificate from the seller's broker to the buyer's broker and legal change of ownership, normally accomplished within a few days. For another, to record the change of ownership on the books of the corporation by the transfer agent. When the purchaser's name is recorded, dividends, notices of meetings, proxies, financial reports and all pertinent literature sent by the issuer to its securities holders are mailed directly to the new owner. 

Transfer agent - A transfer agent keeps a record of the name of each registered shareowner, his or her address, the number of shares owned, and sees that certificates presented for transfer are properly canceled and new certificates issued in the name of the new owner.  

Treasury Bills - The U.S. government issues Treasury Bills, Treasury Notes, and Treasury Bonds. Treasury Bills are issued with 3 month, 6 month and 1 year maturities. They are sold at a discount from their face value, the amount of discount determined by the interest rate to be earned from purchase to maturity. Bills do not pay interest periodically. Instead, they are redeemed for their face value at maturity.

Treasury Bonds and Notes - Issued by the U.S. government, they have maturities of 2 years, 3 years, 5 years, 10 years and 30 years. They all pay interest every 6 months. Notes mature in 10 years or less; the 30-year issue is called a bond. The most recently issued 30-year bond is called "the long bond."

Treasury stock - Stock issued by a company but later reacquired. It may be held in the company's treasury indefinitely, reissued to the public or retired. Treasury stock receives no dividends and has no vote while held by the company.

Trust - A legal arrangement where a person (the grantor) gives control of his or her property to a trust which is administered by an individual or institution (the trustee) for the benefit of one or more beneficiaries. The grantor, trustee and beneficiary may be the same person. The grantor names a successor trustee in the event of incapacitation or death, as well as successor beneficiaries. Trusts are created for a wide variety of reasons such as avoiding probate, providing a protected stream of income should the grantor or beneficiary become incapacitated, and shielding assets from spendthrift heirs. Assets and other property that a person wants to move to a trust, such as real estate and bank or brokerage accounts, must be re-titled so that the trust becomes the owner.

Trustor - The person who creates a trust; also called a grantor.