Taking a Position: The activities of a dealer who purchases a block of a certain security as inventory for the purpose of resale at a profit.
Tax and Revenue Anticipation Notes (TRANs): Short-term notes issued by states or municipalities to finance current operations in anticipation of future tax receipts and revenue that will be used to repay the debt.
Tax Anticipation Notes (TANS): Short-term notes issued by states or municipalities to finance current operations in anticipation of future tax collections that will be used to repay the debt.
Tax-Exempt Bonds: Bonds for which the interest paid is usually exempt from federal taxes and, in some cases, from state and local taxes in state of issuance. The interest rate paid on these bonds is generally lower than rates on securities that are not tax-exempt.
Term Issue: A bond issue that matures all at once on a specific date.
Terms: The conditions of the sale or purchase of a security.
Thin Market: A market in which trading volume is low, with very few bids to buy or offers to sell.
Trade Date: The date when a security transaction is executed.
Trader: Someone who buys and sells securities for a personal account or a firm’s account for the purpose of short-term profit.
Trading Market: The secondary market for bonds that have already been issued. See Secondary Market.
Tranche: See CMO Class.
Treasury Bill (T Bill): An obligation of the U.S. government with a maturity of one year or less. T -bills bear no interest but are sold at a discount.
Treasury Bonds and Notes: Obligations of the U.S. government that bear interest. Notes have maturities of one to ten years; bonds have longer maturities.
Trustee: A bank designated as the custodian of funds and the official representative of bondholders. In this capacity, the trustee is responsible for enforcing the bondholders’ contract with the issuer.