Guide to Analysing Companies

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THRIFT
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Tick
The smallest incremental movement in a security’s price that
a market will allow. It could, for example, be one basis point.
Also used to describe a group of stocks whose last movement
was up or down.
Time deposit
See deposit.
Tip sheet
A publication or internet site designed for private individual in-
vestors which gives advice on hot stocks. The more influential
tip sheets can noticeably move share prices and sometimes
even markets.
TMT
See technology, media and telecommunications.
Tokyo Stock Exchange
The main market for the buying and selling of Japanese
shares. stocks and shares have a rather different role in
Japan’s financial affairs than they do in either the United States
or parts of Europe. Companies are not so dependent on them
for capital; their bankers have traditionally been a more im-
portant source of funds. And shareholders are not fed with gen-
erous dividends; they have to rely for their reward on
capital gain (of which there has been precious little during
the past few years while the economy has been in recession, or
close to it).
The Tokyo stock Exchange is divided into two sections: the
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First Section and the Second Section. All major Japanese compa-
nies are listed on the First Section. The requirements for compa-
nies to obtain a listing on the First Section are more onerous
than the requirements for the Second Section.
Tombstone
An advertisement placed in a financial newspaper or magazine
to announce the completion of a syndicated loan or a new
issue of securities. It is called a tombstone because it consists
of little more than a list of names and numbers. The names are
those of the borrower who pays for the tombstone and of the fi-
nancial institutions which participated in the deal. They are
ordered in strict seniority, the size of the typeface indicating
their importance in the deal.
Tom/next
Short for tomorrow/next day, referring to the practice among
foreign-exchange traders of swapping currencies for short
periods to maximise the holders’ return on their money. For
example, a trader may switch from the Australian dollar to the
US dollar overnight and then buy back Australian dollars the
following day in time to settle an earlier transaction. (See also
swap.)