Glossary of Terms

Treasury Bills.

Treasury Bonds.

Treasury Notes.

A measure of statistical significance.
The t-statistic measures the likelihood that the observed data under review might have arisen randomly (rather than as a result of the proposed statistical relationship).

Statistics.
The extreme upper or lower end of a distribution.

An offer made to the shareholders of a company to acquire their shares (either cash or in exchange for shares in the offering company) in the hope of receiving sufficient acceptances to obtain voting control of the target company.

A self-regulatory body in the UK which administers the City Code, comprising representatives from various financial regulatory bodies and interested groups from the City.

An asset which, in contrast to an intangible asset, has a physical or material existence.
Tangible assets are perceptible by touch, for example, land, buildings and vehicles.

(TNW). The book value of equity, adjusted to exclude intangible fixed assets.

Funds transfer.
Trans-European Automated Real-time Gross settlement Express Transfer.

Banking.
1. Average collected balance that must be maintained to compensate a bank for all the services provided to the company. Targets are often set monthly and monitored daily.

2. The minimum amount that needs to be maintained in each sub-account under a target balancing scheme.

A cash concentration technique whereby all account balances are physically transferred into a nominated account leaving a predetermined amount in the sub-accounts.

Also know as target concentration or sweeping.

Banking.
All funds above a target balance level are transferred to the concentration account.

Pensions funding.
Depending on the funding method being used, this will generally be the fund of assets equal to the value of past service liabilities allowing for projected earnings.

TARGET2 (Trans-European Automated Real-time Gross settlement Express Transfer system) is an interbank payment system for the real-time processing of cross-border transfers throughout the EU.

Strictly speaking it is not itself a funds transfer system, rather it links existing national payment systems.

This payment system started in November 2007 to replace TARGET.

In relation to options, near enough the same as Vega.

1. Compulsory financial contribution imposed by a government to raise revenue, levied on the income or property of persons or organisations, on the production costs or sale price of goods and services.

2. To levy a tax.

The use of legal means to reduce tax liabilities or to achieve favourable tax timing differences.

An often used term for specific financial arrangements or instruments that attract an exemption from - or reduced liability to - different forms of taxation.

Tax computation.

A calculation of tax payable by a business or by an individual with more complex tax affairs, usually prepared by the taxpayer or the taxpayer's agent.
Tax computations are normally submitted to the relevant tax authorities as supplementary material supporting a standardised summary tax return, for example a UK Corporation Tax return.

For a business which produces external accounts, the tax computations will commonly include:
1. A summary adjustment of the (externally reported) accounting profits, to calculate the taxable profits.
2. Additional detail and reconciliations of figures appearing in the accounts.

Sometimes known as a "tax comp" or "tax comps".

1.
A reduction in a tax liability, directly reducing the net amount of tax payable.
For example, the tax credit under the 'imputation system' which wholly or partially imputes to the shareholders some of the corporation tax paid by companies on the income out of which dividends are paid.

In some circumstances a net amount of tax repayable, resulting from certain types of tax credit, can be refunded to the taxpayer in cash.

2.
Less commonly, a smaller indirect reduction in a tax liability, by way of a deduction from the net taxable profits.

US Tax.
Phased US tax relief for capital expenditure.

The use of illegal means to reduce tax liabilities.

A low tax environment - usually a country - used to shelter income and gains from taxation or to defer taxation.

VAT.
The date on which a supply of goods or services is treated as taking place for VAT purposes.

Tax reconciliation.

Accounting.
A quantified explanation of the difference between:

1. The reported tax charge (or credit) in financial statements; and

2. The standard rate of corporation tax applied to the reported accounting profit (or loss).

In this context item 2. above is sometimes known as the 'expected tax charge'.

A deduction allowed by law in calculating a tax liability. Most often by subtracting the deductions from (otherwise) taxable profits, before calculating the amount of tax payable on the reduced net taxable profits.
This - less valuable - type of tax relief is sometimes known as 'expense relief'.

Less commonly, more generous tax relief is given by deducting an amount directly from the amount of a tax liability.
This - more valuable - type of tax relief is sometimes known as 'credit relief'.

Tax relief of the more generous 'credit relief' kind is also often called a 'tax credit'.

However (potentially confusingly) the term 'tax credit' may also - less commonly - refer to 'expense relief', as discussed above.

1. The risk that transactions or business relationships may have unforeseen adverse tax consequences. For example, giving rise to additional tax costs.

2. The risk that the administration of tax may be more costly - or otherwise more burdensome - than foreseen.

Tax risk may arise from existing tax laws and practice, or from changes in tax laws and practice.

1.
Broadly, the benefit to a taxpayer of the tax deductibility of certain business expenses - including borrowing costs - thus reducing their taxable income and their tax expenses.
The term most often refers to borrowing costs - including debt interest - which are normally tax-deductible.
This gives rise to tax shield benefits and reduces the after-tax cost of debt for corporate borrowers.

In cash terms, the annual tax savings for a tax-paying corporate borrower can be quantified as:
Annual tax-deductible debt servicing costs paid (D x Kd) x relevant rate of corporation tax (t)

Where:
D = Debt, for example $100m.
Kd = Pre-tax % cost of debt, for example 5%.
t = Relevant corporate tax rate, for example 28%.

In this example the annual tax shield benefit in $m is:
= ($100m x 0.05 = $5m) x 0.28
= $1.4m.

Another perspective on quantifying the tax shield benefits is the reduction in the after-tax cost of debt (for example = 5% x (1 - 0.28) = 3.6% in this case) compared with the before-tax cost of debt of 5%.

2.
More narrowly, the total present value of all of the expected future related cash flow benefits arising from the use of debt.
The total present value of the expected future cash flow benefits from the tax savings can be quantified/estimated by capitalising the annual saving (for example $1.4m) at the pre-tax cost of debt (for example Kd = 5%) as a fixed perpetuity using the perpetuity factor 1/Kd.
For example total present value of tax shield = $1.4m x [1/0.05] = $28m.

It can also be quantified more simply as D x t.
For example = $100m x 0.28 = $28m as before.

A Euromarket term (mainly) for debt that is covered by a double exemption from withholding tax, enabling lenders to offer narrow margins over the reference rate.

(TWDV). Expenditure which has not yet had tax relief by way of capital allowances, but which will be tax relieved in future periods.

Adjusting method that allows tax-free income or yield to be compared to gross taxable income before any taxes are deducted. This is done in order to determine how much taxable income/yield is required to equal the income or yield generated by a tax-free investment.

Also known as Taxable equivalent yield.

Taxable equivalent income.

UK VAT.
A taxable person is someone who is, or is required to be, registered for VAT.
A 'person' for these purposes is widely defined and may include individuals, partnerships, companies or another corporate bodies.

UK Tax.
Supplies of goods or services in the UK, acquisitions of goods in the UK from other member states; Importation of goods into the UK from outside the European Union.

A statement setting out the entitlement of a UK taxpayer in relation to the level of service and fairness to expect from Her Majesty's Revenue & Customs (HMRC).

Also called, 'Your Charter'.

Transmission Control Protocol.

The mathematical and judgemental review of historic price data, often for the purpose of predicting future prices.

Pensions.
According to the relevant Code of Practice: 'Technical provisions is the name given to an actuarial valuation of the scheme’s benefits earned to date using a method and assumptions chosen prudently by the trustees after taking actuarial advice and with the agreement of the employer'.

Funds transfer.
Also referred to as Repetitive transfer.

A foreign currency translation method. The translation rate adopted preserves the accounting principles used to value assets and liabilities in the original financial statements.

Also known as a bid bond.

An offer of a company's securities at a uniform price (above a specified minimum) that is determined by bids received such that all the securities are subscribed for.

A group of banks which are invited to bid competitively for financial instruments on an auction basis.
The bid offers are collected by the tender panel agent, who then conveys them to the borrower.

A contingent contract providing forward exchange cover for a company tendering competitively for a contract, which is completed only if the company's bid is successful.

Provided by Export Credits Guarantee Department (ECGD).

1. In relation to a financial instrument evidencing a debt obligation, the remaining time until the principal is repayable to the holder.

2. Less commonly, the original time until the principal is repayable.

3. The time until maturity for any given financial instrument.

Also known as Usance.

Deposits, including certificates of deposit, for fixed periods of time.

A bank advance that is contractually agreed for a specified period of time, normally exceeding one year.

Also known as, Term structure of interest rates and Yield curve.

Also known as Yield curve.

UK Tax.
Loss relief which applies when a company ceases to trade. The carry back provisions are extended to 36 months rather then 12 months.

1. A final cash flow expected to be paid out by a short-term or medium-term investment at its maturity.

2. The estimated value of a longer-term business investment calculated as at the end of a more detailed initial forecasting period.

1.
The valuable operational choice available to the owner of a project or of a business, to terminate all or part of it.

This is an example of a real option.
Other examples of real options include the options to expand, contract or defer the given project or business.

Also known as an Abandonment option.

2.
Similar rights in a contract, either at the absolute discretion of the contracting party, or on the occurrence of a specified event.

Also known as Variable currency.

Normally used to describe the basis on which a company sells its goods or services, typically referring to the credit and payment terms.

A statistical quantity calculated from observed quantities which we use to test the null hypothesis.

UK. Abbreviation sometimes used for the Bank of England.

A non-statutory code of practice governing the conduct of takeovers in the UK, which is administred by the Takeover Panel.

Also known as the City Code or Blue Book.

(TPAS). Pensions.
A UK independent voluntary organisation, although partially government funded, which provides information and advice to individuals on all pension matters.

Options analysis.
The sensitivity of the market value of an option with respect to changes in the time to expiry of the option.

Tax.
The loading up of a foreign subsidiary’s capital structure with interest bearing debt.
This has the effect - among other consequences - of transferring taxable profits from the foreign subsidiary to the parent.
(Because the subsidiary is paying a lot of debt interest to the parent, thus lowering the taxable profits of the subsidiary and increasing the profits of the parent.)

Thinly capitalised structures are apt to be challenged by the local tax authorities whose tax base is being eroded in this way.

The 'thin' part of the term 'thin capitalisation' refers to the amount of the equity injected into the subsidiary by the parent. The thin capitalisation tax rules may deem that the equity capital is too 'thin' compared with the related amount of debt which this equity is supporting.

The test for tax purposes of an acceptable proportion of equity (usually expressed as a debt:equity ratio) is one which would be acceptable to an external lender such as an independent bank, lending directly to the subsidiary.

A cash concentration technique where the balances of the sub-accounts are physically transferred in their totality into a nominated account each time the sub-accounts’ balances reach a predetermined threshold.

The minimum price movement in the market quotation for a traded financial instrument, for example financial futures.
The tick value (or tick size) varies between different markets.

Tick.

Treasury Inflation-Indexed Securities.

Risk management.
Intervals of time to repricing.

In determining the risk associated with holding financial assets/liabilities it is necessary to determine the proportion of the total investment whose return/cost can be repriced at specific time intervals. Thus a floating rate instrument whose rate is reset every 6 months will be in the 6-month time bin.

Options analysis.
The loss in Time value of an option or other derivative instrument, as its maturity approaches.

A type of interest-bearing account from which the depositor cannot withdraw funds in advance of an agreed upon time without incurring a penalty.

Term deposits.

Draft that demands payment at a specified future date.

VAT.
Determines which period a transaction falls within for VAT purposes.

A set of data recorded at successive periods of time.

A visual representation of a graph showing time on the horizontal axis and the size of the item on the vertical axis.

1. The component of an option’s total value which is related to the length of the unexpired maturity of the option, and which is additional to the Intrinsic value, if any.

2. Time value of money.

(TVM). The concept that money held now (or receivable immediately) is worth more than the same amount of money to be received at some later time.
The time value of money is reflected in the charging of interest for the use of money, and also in discounted cash flow analysis.

To allocate a money amount on a time basis.

For example total profits of EUR 100,000 for a period of one year (365 days) consisting of a one month (30 days) period and an 11 months (335 days) period would be time-apportioned as follows:

One month period: EUR 100,000 x 30/365 = EUR 8,219
11 months period: EUR 100,000 x 335/365 = EUR 91,781

US Government debt.
Treasury Inflation Protected Securities. Inflation-indexed US Government debt.

Transport Layer Security.

Treasury Management System.

Tangible Net Worth.

A proposal for an additional tax on foreign currency transactions, designed to discourage foreign currency speculation.

The tax was proposed in 1972 by the economist James Tobin.

Transfer Of a Going Concern.

A deal starting from tomorrow maturing the following day.

An advertisement recording terms and participants in a new securities issue, or financing.
So named because of its shape and relatively large size, when printed in a newspaper.

Law.
A civil wrong or breach of a duty to another person, as defined in law. For example, negligence.

Accounting.
Total accounting value of all long-term and short-term assets, minus any accumulated depreciation.

The sum of fixed costs plus variable costs.

Return on an investment taking into account reinvested income as well as capital appreciation.

A capital market swap in which one leg is based on the total return from another financial instrument (for example the dividends plus capital appreciation from an equity). The other leg is conventionally based on a floating reference interest rate, such as LIBOR.

(TSR). A measure of the total rate of return to shareholders for the period under review, based on:

1. The opening value of the shares;
2. Dividends received by the investor;
3. Any capital returned to the investor;
4. Any further capital paid in by the investor; and
5. The closing value of the shares.

The TSR is calculated as the Internal rate of return (IRR) of all of these items, taking account of their timing as well as their amounts.

Taking a simple example with only:
Opening value of each share at Time 0 = $100;
Dividend per share paid one year later at Time 1 = $4;
Closing value of each share at Time 1 = $106.
And no other changes.

The total relevant cash flows for the investor are:
Time 0 outflow = $(100)
Time 1 total inflow = $4 + $106 = $110.

The IRR of these cash flows is 10%: $(100) + $110 x 1.10^-1 = $0.
So the TSR for the year under review is 10%.

In relation to loans or other debt, of very poor credit quality, especially when previously represented as being of strong credit quality.

The Pensions Advisory Service.

An investment fund whose aim is to track a particular investment index (for example the FTSE 100 index). One way of doing this is by replicating the index constituents in the investment portfolio of the tracker fund.
It can also be done by investing in a selected subset of the index, or by the use of appropriate derivative instruments.

A measure of the extent to which the performance of a tracker fund succeeds in matching the performance of the market or index being tracked.

1. Defined for tax purposes, the expression includes every trade, manufacture, adventure or concern in the nature of a trade.

2. More generally, trade normally involves the exchange of goods or services for reward.

3. In the context of market dealing, the term 'trade' is often used interchangeably with 'deal'.

A draft accepted by a company constituting an unconditional and binding obligation on the part of the company to pay the draft at maturity.

The date on which a transaction is executed following which settlement will occur on the agreed settlement date.

Also know as transaction date.

Government policy aimed at controlling the power of trade unions.

An option that is itself tradable on a securities market.

A name, word, symbol, or device that allows the trademark owner to dictate its use in identifying a product.

Where a company borrows or lends money for the purpose of the trade.

One part of a number of different securities that are issued by the same company at the same time. Such securities may differ in terms of risk, yield and/or (most commonly) maturity.

(TARGET). A payment system composed of one real-time gross settlement (RTGS) system in each of the countries of the European Union (EU) and the European Central Bank (ECB) payment mechanism.
The domestic RTGS systems and the ECB payment mechanism are interconnected according to common procedures (interlinking) to allow cross-border transfers throughout the EU to move from one system to another.

1. The act of obtaining and paying for an item or service. Also known as a deal or a trade.

2. The transmission and processing of an item of data.

The depository balances an organisation holds for its collection and disbursement activities.

Same as Trade date.

The risk of adverse changes in foreign exchange rates from the time a foreign currency transaction is entered into, until it is settled.

Also known as transaction risk or transactional exposure.

Also known as Transaction exposure.

(TWIST). A not-for-proft organisation which develops and rationalises existing XML-based standards that connect the financial and physical supply chain.

Also known as the Treasury Workstation Integration Standards Team.

Also known as Transaction exposure.

A desire to hold money to enable day-to-day transactions to be settled efficiently.

1. The sending (or movement) of funds or securities or of a right relating to funds or securities from one party to another by:

i. The conveyance of physical instruments/money; or
ii. Accounting entries on the books of a financial intermediary; or
iii. Accounting entries processed through a funds and/or securities transfer system.

The act of transfer affects the legal rights of the transferor, transferee and possibly third parties in relation to the money balance, security or other financial instrument being transferred.

2. In relation to risk management, a response to risk in which another party is paid - or otherwise induced - to accept the risk.

An individual or company that records, on behalf of a company, the sale and purchase of a company’s securities as well as maintaining detailed ownership records of the company’s shares and other registered securities.
Sometimes a called registrar in the USA.

(TOGC). VAT.
The disposal of a business from one taxable person to another which continues in the same way before and after sale.

Tax.
An area of taxation which examines the prices paid between related parties, usually companies.

Transfer pricing tax rules are designed to prevent related parties from shifting taxable profits between each other in such a way as to avoid tax.

The most important transfer pricing rule is that all transactions between related parties must be at 'arm's length' prices.

If the transfer pricing tax rules did not exist, a parent company could - for example - overcharge its overseas subsidiaries for goods or services.
This would - in this example - reduce the taxable profits of the overseas subsidiaries, the tax liabilities to the overseas tax authorities, and the total tax liabilities of the group, were it not for tax transfer pricing adjustments.
But the tax transfer pricing adjustments in the overseas tax assessments will prevent any tax avoidance in this case by adding back to overseas taxable profits the amounts of any overcharges, effectively restating the taxable profits as if arm's length prices had been charged.

In the context of foreign exchange, the risk that a domestic currency cannot be converted into foreign currency, or vice versa.

A generic term covering funds transfer systems and exchange-for-value systems.

Pensions.
The amount of the pension transfer payment which has to be made when an individual, or group of individuals, leaves one pension scheme and joins another (whether it is another company scheme, or some form of personal pension arrangement).

(TRN). US Banking.
The number that is part of the magnetic ink character Rrecognition (MICR) line of a check or payable through draft that allows the depository bank to route the check back to the drawee bank.

Translation exposure refers to foreign exchange or currency risk. It is the risk of adverse effects in a firm’s reported financial statements, or related financial ratios or borrowing covenant compliance, resulting from changes in the rates at which foreign currency-denominated assets and liabilities are translated into the reporting currency.

This applies most commonly to the translation of monetary assets and liabilities and to the consolidation of overseas subsidiaries into group financial statements.
If the changes in exchange rates were to reverse, the effects on the related amounts in the financial statements would normally also reverse.

Also known as translation risk or translational exposure.

Also known as Translation exposure.

Also known as Translation exposure.

(TCP). A protocol that, in combination with Internet Protocol (IP), allows the transmission of data over networks. IP/TCP, has in practice, become the industry standard.

Economics.
The way in which a change in an economic variable has an effect on the economy.

For example how a change in interest rates would affect rates of inflation or exchange rates. An increase in interest rates in the UK would lead to an appreciation of the domestic currency in the foreign exchange market as the demand for Sterling increases.

Transnational corporation/company.

(TLS). A cryptographic protocol that provides secure communications on the Internet for such things as web browsing, e-mail, Internet faxing, instant messaging and other data transfers. There are slight differences between its predecessor, Secure Sockets Layer (SSL), and TLS, but the protocol remains substantially the same.

The TLS protocol allows applications to communicate across a network in a way designed to prevent eavesdropping, tampering, and message forgery. TLS provides endpoint authentication and communications privacy over the Internet using cryptography.

1.
A simple error of data entry when two digits in a number are reversed (transposed).

When two adjacent digits are transposed the error will always be divisible by 9.

For example:
If 3,460 should be 3,640
the difference is 180 (3,640-3,460=180)
180/9 = 20.

2.
Similar errors with non-numerical data.
For example ABC entered wrongly as ACB.

Law.
Materials used in or influencing the drafting of legislation.

A card issued by non banks indicating that the holder has been granted a line of credit.
It enables the holder to make purchases but does not offer extended credit, the full amount of the debt incurred having to be settled at the end of a specified period. The holder is usually charged an annual fee.

Also known as a Corporate card.

Treasury Counterparty.

A person appointed to manage the financial aspects of a society, company, city or other governing body.
Small firms may combine the management position of Finance Director with that of Treasurer.
Larger firms would split these responsibilities with the Treasurer responsible for day-to-day activities and the Finance Director for policy.

1. The UK government department responsible to the Chancellor of the Exchequer which (among its other responsibilities) is responsible for Her Majesty's Revenue & Customs.

2. Comparable government departments in other countries.

3. A corporate function concerned with the management of financial risk. (The individuals who work in this function are known as corporate treasurers.)

4. Treasury securities.

Short-term discount debt instruments issued by the central government.
For example, the US Treasury issues T-Bills in maturities of 13, 26 and 52 weeks.

Coupon securities issued by the US Treasury with interest paid semi-annually in original maturities of ten years to 30 years.

(TRCO). This allows properly sponsored companies to exchange messages relating to deal confirmation via SWIFT.

(TIIS) US. Government securities which are inflation-protected in respect of their real value through their linkage to the consumer price index.

Also know as Treasury Inflation-Protected Securities (TIPS).

(TIPS). Also known as Treasury inflation-indexed securities.

The practice and theory of corporate treasury.

Configurations of hardware, software, and information sources designed to assist in the collection and formatting of information and routine calculations.

(TMS). Also known as Treasury management information system.

Interest-bearing securities issued by the US Treasury with original maturities of two to ten years.

‘Full Faith and Credit’ obligations of the US Government issued by sale at periodic auctions, and delivered and cleared electronically.

A company’s own shares that have been bought as a result of a share buy-back.
In the UK, shares bought back may be held as treasury shares on the balance sheet, sold for cash, cancelled or used for employee share schemes.

(TWS). A personal computer that has software that gathers information from both internal and external sources and compiles the data to be analysed for decision-making purposes. It is also capable of initiating transactions such as wire transfers or Automated Clearing House (ACH) transfers.

(TWIST). See Transaction Workflow Innovation Standards Team.

Market conditions under which there is believed to be a greater probability that a subsequent price movement will be in the same direction as the previous period's price movement (rather than in the opposite direction).

Trend analysis is based on reviewing historical price data, often for the purpose of predicting future price changes based on assuming the continuation of historical trends.
Trend analysis is an important aspect of Technical analysis.

In a simple trending process, the correlation coefficient between successive periods' price movements is positive.
In other words, there is a greater probability that a subsequent price movement will be in the same direction as the previous period's movement (rather than in the opposite direction from the previous period's movement).

Accounting.
This is a list of closing balances for every account in the nominal ledger.

When converting from one national currency unit within European Monetary Union (EMU) to another, the conversion must be done via the euro.

1. One thousand billion (1,000,000,000,000 or 10¹²).
For example EUR 100 trillion = EUR 100,000,000,000,000.

2. Historically in the UK and some other countries, "trillion" used to refer mathematically to 1,000,000,000,000,000,000 (or 10¹⁸). This historical usage never became established in finance, and is now for practical purposes defunct.

The assessment of a proposal in terms of its environmental, social and financial consequences.

Treasury Risk Management Committee.

Rights issues.
1.
A trombone is a feature of a rights issue, commonly seen in contested takeover bids, where the acquirer is financing the acquisition by issuing more its own shares for cash.

The trombone provides for the total size of the rights issue to be increased, usually on the condition that an acquisition goes ahead as planned.
(The full amount of the rights issue not being justifiable to raise if the acquisition does not proceed.)

The term derives from the slide on a trombone, used to vary the volume of air in - and hence the pitch of - the instrument.

2.
A similar feature in an issue of convertible loan stock.

3.
Similar features in issues made to raise funds for research and development, where the need for the expenditure may be contingent on - for example - receiving clinical approvals for a new drug.

Accounting.
By law financial statements must give a 'true and fair view'. This phrase is undefined but depends upon both the application of generally accepted accounting principles and the exercise of judgement.

Banking.
A procedure in which the physical movement of paper payment instruments (for example paid cheques or credit transfers) within a bank, between banks or between a bank and its customer is curtailed or eliminated, being replaced, in whole or in part, by electronic records of their content for further processing and transmission.

1. UK Law and pensions.
A legal concept whereby property is held by one or more persons for the benefit of others for the purposes specified in the trust deed. In a pensions context, the beneficiaries of the trust are the members of the pension scheme.

2. US. A large organisation that has control - or attempts to gain control - of a market by the use of monopoly or other anti-competitive trade practices.

1. Law and pensions.
A legal document, drawn up in the form of a deed, which establishes or regulates a trust. In relation to pensions, trust deeds constituting pension trusts can vary very widely in their form and content.

2. A similar legal document in a bond issue. Also known as the Bond indenture.

In relation to pensions, an insurance policy available to trustees, trustee directors and, sometimes, sponsoring companies in respect of certain categories of liability.

Law and pensions.
Those who hold property under a trust arrangement.
In relation to pensions, individuals who act as trustees (or as directors of a corporate trustee) may be company nominated, member nominated, or independent, as long as the provisions of the Pensions Act (in the UK) are complied with. Members of pension schemes, including those receiving pensions, may act as trustees of the related pension trust.

Total Shareholder Return.

The difference between the bid and offer prices quoted by an individual market-maker.

Turnbull Guidelines.

Guidance on internal control issued by the UK Financial Reporting Council.

Based on the Turnbull Report (Internal Control: Guidance for Directors on the Combined Code), published by the Internal Control Working Party of the Institute of Chartered Accountants in England and Wales.

The Guidance sets out how directors of listed companies should comply with the UK's former Combined Code requirements in respect of internal controls, including financial, operational, compliance and risk management.

(The former Combined Code requirements are now incorporated in the UK Corporate Governance Code.)

1. The total sales for a business, usually expressed on a per annum basis.

2. The number of times that inventory or other working capital is replaced per annum. Measured for example by the Inventory turnover ratio.

Taxe à la Valeur Ajoutée.
The French equivalent of UK VAT.

Time Value of Money.

Tax Written Down Value.

1. Transaction Workflow Innovation Standards Team.

2. Treasury Workstation Integration Standards Team.

A statistical significance test where the critical region consists of both tails of the distribution.

Different prices at which a market maker quotes simultaneously to buy or to sell an asset.

Treasury Workstation.

An error that occurs in significance testing when the null hypothesis is rejected when it is actually true.
Also known as a 'false positive'.

The probability of a false positive is often known as the significance level.
For example a significance level of 5%: meaning in this case that there would only be a 5% probability that the observed result could have happened by chance alone.

However the significance level is also sometimes expressed as [1 - the probability of a false positive].
For example in the same situation the significance level might alternatively be quantified as [1 - 5%] = 95%.
Meaning that there is 95% confidence that the observed result did not happen by chance alone.
For the avoidance of doubt it is therefore always best to be explicit about which basis the significance level is being quoted on.

An error that occurs in significance testing when the null hypothesis is accepted when it is actually false.

Also known as a 'false negative'.

Often known as the power of a test.