What Is T+1 (T+2, T+3)? T+1 (T+2, T+3) are abbreviations that refer to the settlement date of security transactions. The “T” stands for transaction date, which is the day the transaction takes place. The numbers 1, 2, or 3 denote how many days after the transaction date the settlement—or the transfer of money and security
What Is Trade Reporting and Compliance Engine (TRACE)? Trade Reporting and Compliance Engine (TRACE) is a program developed by the National Association of Securities Dealers (NASD), which is now known as FINRA, that allows for the reporting of over-the-counter (OTC) transactions pertaining to eligible fixed-income securities. Brokers, who are FINRA members and deal with specific
What Is a Tracking Error? Tracking error is the divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This is often in the context of a hedge fund, mutual fund, or exchange-traded fund (ETF) that did not work as effectively as intended, creating an unexpected profit or loss. Tracking error
What Is Trade? Trade is the voluntary exchange of goods or services between different economic actors. Since the parties are under no obligation to trade, a transaction will only occur if both parties consider it beneficial to their interests. Trade can have more specific meanings in different contexts. In financial markets, trade refers to purchasing
What Is Tit for Tat? Tit for tat is a game-theory strategy subject to a payoff matrix like that of a prisoner’s dilemma. Tit for tat was introduced by Anatol Rapoport, who developed a strategy in which each participant in an iterated prisoner’s dilemma follows a course of action consistent with his opponent’s previous turn.
What Is a Title Binder? A title binder is a temporary form of real estate insurance coverage related to the transfer of ownership. A title binder is typically used to protect both the seller and buyer of a real estate property during the transitional phase of a sale when the seller’s and buyer’s home insurance
What Is a Title Loan? A title loan is a loan that requires an asset as collateral. Title loans are popular for two key reasons. First, an applicant’s credit rating is not taken into consideration when determining qualifications for the loan. And second, thanks to looser application requirements, a title loan can be approved very
What Is a Title Search? The term title search refers to the examination of public records to determine and confirm a property’s legal ownership. Title searches are conducted through many sources, including deeds, tax liens, land records, court judgments, among others. Normally conducted by title companies, searches can be ordered by individuals and businesses at
What Is the TMX Group? The TMX Group is a large Toronto-based financial services company that operates the Toronto Stock Exchange (TSX), TSX Venture Exchange, Montreal Exchange, and TSX Alpha Exchange. The group operates exchanges for derivatives, equity, and fixed income trades through trading, clearing, depository, and settlement services. Key Takeaways TMX Group operates the Toronto Stock Exchange, TSX
What Is a Tobacco Tax/Cigarette Tax? A tobacco or cigarette tax is a tax imposed on all tobacco products by various levels of government, often with the alleged goal of reducing tobacco use or at least generating revenues earmarked to fund related healthcare programs. The terms “Tobacco Tax” and “Cigarette Tax” are used interchangeably. Key
