The role of this glossary is to present brief definitions of most of the key concepts in corporate finance and management (in total 900 names-definitions) with aim the reader to be able to understand and become familiar with the terminology in the analyses that will present in the category Corporate & Business.
Additionally, we hope that the reader by acquiring intimacy with the specific terminology, he will also love the science of finance and management, giving to it a significant part of his personal time.
In the following glossary we tried to include the most well-known definitions and terms in the field of Corporate Finance & Management. If you still find that a term or definition is missing and you know that it can be included in this glossary, please do not hesitate to contact us via the contact form of our web-site (Contact Us) and the Liberal Globe will edit it and will include it.
Glossary Corporate Finance & Management
There are currently 46 names in this directory beginning with the letter T.
Take-out merger
the second step transaction which merges the acquired firm into the acquirer and thus “takes out” the remaining target shares which were not purchased in the initial (partial) tender offer.
Take-up fee
is a fee paid to underwriters of a rights issue on any stock that they are obliged to purchase.
Targeted share repurchases
refers to repurchasing the stock of a large block holder (an unwanted acquirer) at a premium over the market price (greenmail).
Task of the manager
the design and maintenance of an environment for the effective and efficient performance of individuals working together in groups toward the accomplishment of preselected missions and objectives.
Tax-anticipation bill
short-term bill issued by the US Treasury that can be surrendered at face value in payment of taxes.
Tax-free reorganization
a takeover transaction in which the primary consideration paid to obtain the voting stock or assets of the target must be the voting stock of the acquiring firm. In fact, tax is only deferred until target shareholders sell the stock received.
Team effects
a form of organization capital; information which helps assign employees for an efficient match of capabilities to tasks and which helps to match managers and other employees to form efficient teams.
Team production
team output is greater than the sum of outputs of individual team members working independently (synergy); increased output cannot be unambiguously attributed to any individual team member.
Technology
the sum of knowledge of ways of doing things; it includes inventions, techniques, and the vast store of organized knowledge of how to do things.
Telecommuting
a situation where a person can work at home at the computer terminal instead of commuting to work by car, public transportation, or other means.
Teleconference
a group of people interacting with each other using audio and video media with moving or still pictures.
Tender offer
a method of effecting a takeover via a public offer to target firm shareholders to buy their shares.
Tender panel
is a panel of underwriting banks established to bid for notes issued under a note issuance facility.
Term structure of interest rates
relationship between interest rates on loans of different maturities.
Theory
the systematic grouping of interdependence concepts and principles which give a framework to or tie together, significant knowledge.
Theory X and Theory Y
assumption about the nature of people (by Douglas McGregor). Theory X suggests that people dislike work and will avoid it if they can. On the other hand, Theory Y suggests for instance, that the expenditure of physical and mental effort in work is as natural as play or rest.
Theory Z
several authors proposed theories using the letter Z. In general, Theory Z refers to selected Japanese managerial practices adapted to the environment of the US as suggested William Ouchi. i.e. one of the characteristics of Type Z organizations is the emphasis on interpersonal skills needed for group decision making.
Throughput arrangement
is an arrangement by which shareholders of a pipeline company agree to make enough use of pipeline to enable the pipeline company to service its debt.
Time trader
investors who buy or sell because of events unrelated to stock price fluctuations i.e. for a portfolio adjustment needs.
Time-weighted rate of return
rate of return that gives equal weight to each time period; used in investment performance measurement.
Top-down planning
an approach to overall firm strategy based on company-wide forecasts from top management, versus aggregation of segment forecasts.
Total capital requirements
a firm’s financing requirements. Two alternative measures:
1) Total capital = current assets - noninterest bearing debt + net fixed assets
2) Total capital = interest bearing debt + shareholders’ equity
Trade acceptance
written demand that has been accepted by an industrial company to pay a given sum at a future date.
Trait appraisals
appraising people, whether managers or nonmanagers, based on personality traits and work-oriented characteristics.
Transfer agent
individual or institution appointed by a company to look after the transfer of securities.
Treasury bill
short-term discount debt maturing in less than one year, issued regularly by the government.
Treasury stock
common stock that has been repurchased by the company and held in the company’s treasury.
Trigger point
the level of share ownership by a bidder at which provisions of a poison pill antitakeover defense plan are activated.
Two-tier tender offer
tender offers in which the bidder offers a superior first-tier price (i.e. higher or all cash) for a specified maximum number of shares it will accept and simultaneously announces its intentions to acquire remaining shares at a second-tier price (lower and/or securities rather than cash).
Type A, B, C reorganization
forms of tax-free reorganizations,
Type A-statutory mergers (target merged into acquirer) and consolidations (new entity created).
Type B-stock-for-stock transaction in which target is liquidated into acquirer or maintained as separate operating entity.
Type C-stock-for-asset transaction in which at least 80% of fair market value of target’s property is acquired; target then dissolves.
