Tax credit:

An income tax credit that directly reduces the amount of income tax paid by offsetting other income tax liabilities.

Tax deduction:

A reduction of total income before the amount of income tax payable is calculated.

Tax-deferred annuity:

A tax-deferred annuity is a type of investment that guarantees payment of specific amounts of money at specific times, or a single lump sum payment. It also allows for the postponement (but not eliminate) taxes on earnings. You only pay tax when you receive money from the annuity.

Tax-Deferred savings:

An RRSP is an example of a tax-deferred savings plan (but don't eliminate). Unlike taxable savings, the taxes on the interest, dividends and capital gains of the tax-deferred savings are postponed until you cash them in or draw income from converting the RRSP into an RIF or other type of income withdrawal plan.

Taxable benefit:

An employee benefit paid for by an employer, on which the employee is taxed.

Taxable income:

Includes income from all sources, before deduction.

Tax shelter:

A form of investment that in some legal manner reduces or defers the taxes an investor must pay.

Technical analysis:

A form of investment research that focuses on information and events in the marketplace itself, generally without reference to the fundamental underlying the issuers of the securities traded in the market. Hence, a stock market technician might look at stock prices and trading volumes in an effort to determine where prices were going in the future.

Tenant:

The holder of a leasehold estate (also called a lessee)

Tenants in common:

Two or more people who own the same piece of property, with the inherent condition that if one of the tenants die, his interest automatically passes on to his heirs.

Term bonds:

A bond issue in which all bonds mature at he same time.

Term insurance:

Life insurance which pays if death occurs within a stated period of time. There is not usually a cash value under a term insurance policy.

This is a life insurance pure and simple. You choose the number of years (the term) you are insured and the amount your survivors get if you die within that term. The term you choose can be for a given number of years, for example 10 or 20, or up to a certain age, for example 65 or 100. The main features of term-to-100 policy are: 1. Fixed premiums, 2. Fixed death benefits, 3. No cash value.

Term loan:

Loan extended by a bank for more than the normal 90-day period. A term loan might run 5 years or more.

Term to 90 annuity:

An annuity that pays a fixed amount each year until it is exhausted in the year that the annuitant turns 90.

Term (Real estate):

The length of time which a mortgage agreement covers. Payments made may not fully repay the outstanding principal by the end of the term because the amortization period is longer.

Term or Time deposit:

Interest-bearing deposit at a savings institution that has a specific maturity.

Testamentary trust:

A trust created under the terms of a will and takes effect on the death of the testator.

Testator:

The person who is making a will in their own name.

Ticker symbol:

A ticker symbol is a combination of letters that identifies a stock-exchange security. Often, it is the truncated or abbreviated name of the company or group issuing the security. For example BCE stands for (Bell Canada Enterprises) and DJ30 stands for (Dow Jones 30).

Timing the market:

The method investing by timing market highs ("sell" points) and market lows ("buy" points).

Time value of money:

Because money invested in a security or deposited in a savings account will earn income over time, there is a value placed on the use of money for any given period. This value is represented, for example, by the rate of interest paid on a savings account. This concept is central to much of investment valuation theory, particularly as regards debt instruments.

Time-weighted return (TWR):

A time-weighted return is a measure of the performance (income and price changes) of investments independent of the amount of money invested. Because the TWR is expressed as a percent gain or loss, it's makes for a easy comparison with other percent changes for the same time period.

By annualizing the TWR and expressing it as an interest rates that you can easily compare it with other interest rates for the same time period.

Title:

A document that gives evidence of an individual's ownership of property.

Title search:

An examination of municipal records to determine the legal ownership of property.

Total debt ratio (TDS) (Real Estate):

The percentage of gross annual income required to cover payments associated with housing and all other debts and obligations, such as payments on a car loan.

Top-Down:

A management style that begins with an assessment of the overall economic environment and makes a general asset allocation decision regarding the financial markets and various industry sectors. The top- down manager selects a portfolio of individual securities within the favored sector. (See bottom-up)

Trade balance:

The value of exports minus the value of imports.

Trade date:

The date on which a transaction is initiated. The settlement date may be in the trade date or a later date.

Treasury bill:

A non interest-bearing discount security issued by the Canadian Treasury to finance the national debt. Most bills are issued to mature in 3 months, 6 months, or 1 year.

True savings account:

An account at a bank, trust company, loan association or credit union on which interest is paid, but provides no checking privileges.

Trust company:

A company formed under The Loan and Trust Act and operates as a private intermediary and also acts as a deposit-accepting institution which also makes loans.

Trust officer:

A person who works in the estate planning department of a trust company.

Trustee:

A person who administers assets held in trust for another person.

Trust:

A bequest or device which puts legal title and control of property in the hands of a party (trustee) for the benefit of another party (beneficiary).

Tuition tax credit :

A non-refundable credit for tuition fees paid to a university, college or other institution where post-secondary level courses are offered.

TSE Index:

(TSE 35) TORONTO 35 INDEX

An index of 35 liquid Canadian stocks, including stocks from most subgroups, but excluding Real Estate & Construction.

(TSE 100) TORONTO 100 INDEX

An index of the top 100 companies in the Toronto 300 Index, ranked by quoted market value.

(TSE 300) TORONTO 300 INDEX

An index of 300 Canadian stocks, in fourteen subgroups, designed to represent the Canadian equity market.

This Glossary of financial terms was created by Fiscal Agents Financial Information Services, Research Department. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, mechanical, electronic, photocopying, recording, or otherwise, without the prior written permission of Fiscal Agents. Copyright Fiscal Agents © 2000. All Worldwide Rights Reserved. Click to contact Glossary editor or see the permissions page.