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T3 Form
Referred to as a Statement of Trust Income Allocations and Designations. When a mutual fund is held outside a registered plan, unitholders of an unincorporated fund is sent a T3 form by the respective fund.

T4 Form
Referred to as a Statement of Remuneration Paid. A T4 form is issued annually by employers to employees reporting total compensation for the calendar year. Employers have until the end of February to submit T4 forms to employees for the previous calendar year.

T5 Form
Referred to as a Statement of Investment Income. When a mutual fund is held outside a registered plan, shareholders are sent a T3 form by the respective fund.

Tactical Asset Allocation
An asset allocation strategy that involves adjusting a portfolio to take advantage of perceived inefficiencies in the prices of securities in different asset classes or within sectors.

Takeover Bid
An offer made to security holders of a company to purchase voting securities of the company which, with the offeror's already owned securities, will in total exceed 20% of the outstanding voting securities of the company. For federally incorporated companies, the equivalent requirement is more than 10% of the outstanding voting shares of the target company.

Tax Free Savings Account (TFSA)
A savings vehicle whereby income earned within a TFSA will not be taxed in any way throughout an individual's lifetime. In addition, there are no restrictions on the timing or amount of withdrawals from a TFSA, and the money withdrawn can be used for any purpose.

Tax Loss Selling
Selling a security for the sole purpose of generating a loss for tax purposes. There may be times when this strategy is advantageous but investment principles should not be ignored.

T-Bills
See Treasury bills.

Technical Analysis
A method of market and security analysis that studies investor attitudes and psychology as revealed in charts of stock price movements and trading volumes to predict future price action.

Term Insurance
A type of insurance policy that pays a death benefit if the insured dies within the given contracted period. It is sometimes called pure insurance as it does not have a savings component and is put in place strictly for insurance purposes.

Term to Maturity
The length of time that a segregated fund policy must be held in order to be eligible for the maturity guarantee. Normally, except in the event of the death of the annuitant, the term to maturity of a segregated-fund policy is 10 years.

Thin Market
A market in which there are comparatively few bids to buy or offers to sell or both. The phrase may apply to a single security or to the entire stock market. In a thin market, price fluctuations between transactions are usually larger than when the market is liquid. A thin market in a particular stock may reflect lack of interest in that issue, or a limited supply of the stock.

Tilting Yield Curve
The yield curve that results from a decline in long-term bond yields while short-term rates are rising.

Time to Expiry
The number of days or months or years until expiry of an option or other derivative instrument.

Time Value
The amount, if any, by which the current market price of a right, warrant or option exceeds its intrinsic value.

Time-Weighted Rate of Return (TWRR)
A measure of return calculated by averaging the return for each subperiod in which a cash flow occurs into a return for a reporting period.

Timely Disclosure
An obligation imposed by securities administrators on companies, their officers and directors to release promptly to the news media any favourable or unfavourable corporate information which is of a material nature. Broad dissemination of this news allows non-insiders to trade the company's securities with the same knowledge about the company as insiders themselves. See also Continuous Disclosure.

Tombstone Advertisements
A written advertisement placed by the investment bankers in a public offering of securities as a matter of record once the deal has been completed.

Top-Down Approach
A type of fundamental analysis. First, general trends in the economy are analyzed. This information is then combined with industries and companies within those industries that should benefit from the general trends identified.

Toronto Stock Exchange (TSX)
The largest stock exchange in Canada with over 1,700 companies listed on the exchange.

Trade-Weighted Exchange Rate
Rate produced by the Bank of Canada that measures the Canadian dollar's movements against ten major currencies.

Trading Unit
Describes the size or the amount of the underlying asset represented by one option contract. In North America, all exchange traded options have a trading unit of 100 shares.

Trailer Fee
The company (issuer) that owns the mutual fund, exchange-traded fund or closed-ended fund, may pay a commission to BMO InvestorLine. This commission is called a trailer fee because the fee ‘trails’ the investor for as long as they hold units in the fund. In return, fund holders receive ongoing service from BMO InvestorLine, such as information about their fund’s/s’ performance. The trailer fees are paid out annually and are part of the fund’s management expenses.

Transaction Date
The date on which the purchase or sale of a security takes place.

Transfer Agent
An agent, usually a trust company, appointed by a corporation to maintain shareholder records, including purchases, sales, and account balances. The transfer agent may also be responsible for distributing dividend cheques.

Treasury Bills
Short-term government debt issued in denominations ranging from $1,000 to $1,000,000. Treasury bills do not pay interest, but are sold at a discount and mature at par (100% of face value). The difference between the purchase price and par at maturity represents the lender's (purchaser's) income in lieu of interest. In Canada, such gain is taxed as interest income in the purchaser's hands.

Treasury Shares
Authorized but unissued stock of a company or previously issued shares that have been re-acquired by the corporation. The amount still represents part of those issued but is not included in the number of shares outstanding. These shares may be resold or used as part of the option package for management. Treasury shares do not have voting rights nor are they entitled to dividends.

Trend
Shows the general movement or direction of securities prices. The long-term price or trading volume of a particular security is either up, down or sideways.

Trust Deed (Bond Contract)
This is the formal document that outlines the agreement between the bond issuer and the bondholders. It outlines such things as the coupon rate, if interest is paid semi-annually and when, and any other terms and conditions between both parties.

Trustee
For bondholders, usually a trust company appointed by the company to protect the security behind the bonds and to make certain that all covenants of the trust deed relating to the bonds are honoured. For a segregated fund, the trustee administers the assets of a mutual fund on behalf of the investors.

TSX Venture Exchange
Canada's public venture marketplace, the result of the merger of the Vancouver and Alberta Stock Exchanges in 1999.

Two-Way Security
A security, usually a debenture or preferred share, which is convertible into or exchangeable for another security (usually common shares) of the same company. Also indirectly refers to the possibility of profiting in the future from upward movements in the underlying common shares as well as receiving in the interim interest or dividend payments.