Derivatives

Options and other instrument whose value depends on an underlying security. For instance, the value of a call option on Cisco Systems (derivative) fluctuates with the price of Cisco System’s stock.

Diluted Earnings (a.k.a. fully diluted earnings)

Total of after tax (bottom line) earnings divided by number of common shares including unexercised stock options, and unconverted preferred stock and convertible bonds. Undiluted earnings would be after tax earnings divided by issued stock only, not considering outstanding options, etc.

Transactions

As reported in exchange trading statistics, represents the total number of trades for a specified period.

Transfer Agent

A trust company appointed by a listed company to keep a record of the names, addresses and number of shares held by its shareholders. Frequently, the transfer agent also distributes dividend cheques to the company’s shareholders.

Discount

The difference between a bond’s face value and its current market price. 

Transferable Security

A security that can be transferred from one party holder to another without restrictions, provided that all proper documentation is included.

Discount Broker

A stockbroker charging lower commissions than full-service brokers. Discount brokers do not give investment advice.

Trend Lines

These are lines, both up and down, that are formed by a stock?s price movement. In the simplest sense, trend lines are drawn between a stocks successive lows to find support, and successive highs to find resistance. The more times a stock?s price touches a trendline and holds, the better an indicator it is. Trend lines can be long term and short term, and, as noted, can be used to determine support and resistance. We often use trendlines to help determine when we should enter of exit trades. When we are in positions and following the trend, we do not like to see the stock break its trend for greater than one day. If a stock does that, it has changed its character, and the trendline is most likely no longer in force.