Coordinated Capital Securities, Inc. - Glossary

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T + 3 - The date specified for delivery of securities between securities firms, usually three business days after the execution of an order.

Tax deferred - No taxes are paid on the accumulated earnings until they are withdrawn from the account at which time they are subject to income tax. Traditional IRAs are tax deferred. Tax deferral gives an investor an advantage because earnings will compound at a faster rate than investment vehicles that are taxed every year. Individuals that anticipate being in a lower tax bracket when the money is withdrawn, such as during retirement, will also find that tax deferral will work to their advantage.

Tax filing due date - Date that an individual's federal tax return is due to the Internal Revenue Service. For most people, this date is April 15th. This is also the date by which an annual contribution must be made to a Traditional, Spousal, or Roth IRA. For contributions made by employers in the form of a SEP contribution the deadline is the employer's tax filing due date including extensions. This means that if the employer has filed with the IRS for an extension to file their tax return the deadline for making the SEP contribution would be the date that their tax return is actually due.

T-Bill (Treasury Bill) - A short-term debt obligation of the US Government that is purchased at a discount from face value--that is, they are bought at a discounted price and mature at face value. The amount of the discount is considered the interest. They are sold in denominations of $10,000 to $1 million and have maturities of either 13 weeks, 26 weeks or 52 weeks. T-bills are a common abbreviation for "Treasury bills".

T-Bond (Treasury Bond) - A long term debt obligation of the US government that has a maturity of more than 10 years. They are issued in $1,000 denominations and pay interest semiannually. T-bonds are a common abbreviation for "Treasury bonds".

Technical analysis - Anticipating future price movement using historical prices, trading volume, open interest and other trading data to study price patterns.

Tenants In Common - Form of ownership whereby two or more persons hold title in such a way that when one of them dies, the deceased's interest passes to his or her heirs and not the surviving tenants.

Tender offer - An action of a corporation to buy shares of another corporation for cash. A tender can also occur because a company wants to buy back some of its own shares from its shareholders.

Testamentary Trust - A trust that is established within a person's will. This differs from an inter vivos trust that is created during the grantor's lifetime.

Theta - The sensitivity of an option's value to a change in the amount of time to expiration.

Thirty Day Wash Rule - IRS rule stipulating that losses incurred from selling securities may not be used to offset gains if an equivalent security is bought within thirty days before or after the date of sale.

Tick - A minimum change in price, up or down.

Ticker Symbol - Letters used in trading to identify a corporation's securities on the ticker tape.

Ticker Tape - Telegraphic system that displays security transactions within a minute after it occurred. Commonly called the "tape", it provides the trade's last sale price and volume.

Time limit order - A customer order that designates the time during which it can be executed.

Time value - The portion of the option premium that is attributable to the amount of time remaining until the expiration of the option contract. Time value is whatever value the option has in addition to its intrinsic value.

T-Note (Treasury Note) - A intermediate term debt obligation of the US government that has maturities of one to ten years. They are issued in $1,000 denominations and pay interest semiannually. T-notes are a common abbreviation for "Treasury notes".

Total distribution - A distribution that will close out the account. It is also referred to as a lump sum distribution. All funds and assets are being distributed (except for $50 closing fee if applicable). The value of the total distribution is reported on IRS Form 1099R.

Trade date - The calendar day on which a securities transaction occurred.

Trading - Buying and selling

Traditional IRA - Category of IRAs that consists of the following types of IRAs:

• Regular

• Spousal

• Conduit

• SEP

• SAR SEP

All of these IRA's follow the same set of IRS Rules.

Transfer - Transfer of funds or assets directly from one Custodian to another. The check from the current IRA Custodian is made payable to the new or receiving Custodian for the benefit of the client. Since there is no distribution to the account holder and they do not have access to the funds, there is no limit to the number of transfers that an IRA holder can do in a given year. Transfers are not reported to the IRS. Important: Do not confuse a transfer with a rollover, which is reported to the IRS. If one firm codes a transaction as a rollover, and one firm codes the same transaction as a transfer, the client could be audited by the IRS due to unbalanced reporting.

Transfer agent - Appointed by a corporation, an agent keeps records on registered shareholders, cancels sold certificates, issues new certificates to new owners, and resolves any problems arising from lost, stolen or damaged certificates.

Treasury Bill - T-Bill. A short-term debt obligation of the US Government that is purchased at a discount from face value--that is, they are bought at a discounted price and mature at face value. The amount of the discount is considered the interest. They are sold in denominations of $10,000 to $1 million and have maturities of either 13 weeks, 26 weeks or 52 weeks. T-bills are a common abbreviation for "Treasury bills".

Treasury Bond - T-Bond. A long term debt obligation of the US government that has a maturity of more than 10 years. They are issued in $1,000 denominations and pay interest semiannually. T-bonds are a common abbreviation for "Treasury bonds".

Treasury Note - T-Note. A intermediate term debt obligation of the US government that has maturities of one to ten years. They are issued in $1,000 denominations and pay interest semiannually. T-notes are a common abbreviation for "Treasury notes".

Treasury Stock - Issued stock that has been re-acquired by the corporation from the stockholders--it is not outstanding. The stock is not eligible to receive dividends or to vote. These shares may be held by the company indefinitely, reissued to the public or retired. Among other reasons, treasury stock may be created to counter a tender offer and to provide shares for the exercise of stock options, warrants and convertible securities.

Triple Witching Hour - The last trading hour on the third Friday on which stock options, stock index options, and stock index futures all expire simultaneously. This occurs in the months of March, June, September and December. There may be a large amount of trading as traders and investors attempt to close their positions in the option and/or the underlying stock. This may create a volatile market.

Type 1 Account (Cash Account) - A type of brokerage account which requires that transactions must be settled in full (no margin or borrowed monies) by the settlement date. Some types of accounts such as Individual Retirement Accounts and Custodian for Minor accounts must be cash accounts.

Type 2 Account (Margin Account) - Brokerage account allowing customers to buy securities with money borrowed from the broker. Sales of margin accounts are governed by REGULATION T of the Federal Reserve Board, the National Association of Securities Dealers (NASD), and by brokerage firm house rules. A signed MARGIN AGREEMENT is a prerequisite to establishing a margin account.

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