Tailor made combination
Multi-legged options order traded at a net price.
When one company successfully makes a bid for the shares of another company and takes control of that company.
Buyer of an option contract.
An asset with a physical form (e.g. stock or real estate)
Tax file number
A unique number assigned to taxpayers by the Australian Taxation Office for tax administration. You need to quote the number to employers, benefit and allowance providers, banks and other investment bodies.
ATO term - An estimate of the difference between the amount of tax theoretically payable (assuming full compliance of tax law by all taxpayers) and the amount actually reported or collected for a defined period.
A scheme that attracts investment mostly for the tax benefits it offers, such as an agricultural or film scheme. An investment is said to be 'tax-effective' if investors pay less tax on it than they would have on another investment that gives the same return.
The level of annual income, as set by the Australian Taxation Office (ATO), on which you do not have to pay income tax.
The risk that changes to the tax system could affect the outcome of your investments.
Method used to identify investment opportunities through the study of price action. A chart representing past price movements is the principle tool used to identify trends on which analysts can base their future predictions.
Telecommunications Industry Ombudsman (TIO)
A free independent service to help resolve telephone and internet complaints.
A person's right to occupy land or buildings as per the terms of a lease or other agreement.
Tenants in common
Where two or more people hold shares in a property. Each owner has the right to deal with their share of the property separately to the others. Tenants in common may pass on their share to a nominated beneficiary in their will
The length of time a loan or an investment will run for.
An account with a financial institution where money is deposited for a set period of time. The interest rate is usually fixed for the term of the deposit and is generally higher than a transaction account but not always higher than some other at-call high interest savings accounts. Also known as a fixed deposit.
Terms of the scheme
As defined in the Listing Rules, it includes terms, conditions, rules, regulations or guidelines formulated to introduce or administer an employee incentive scheme.
Third party property insurance
A type of car insurance that covers damage you cause to other people's property (e.g. their car or home), as well as your own legal costs.
Third party, fire and theft insurance
A type of car insurance that covers damage to other people's property, and provides limited cover for damage to your own car, as a result of theft or fire.
Smallest allowed movement in price.
Amount by which an option premium exceeds intrinsic value.
When an amount is expressed in today's dollars, it means the result has been adjusted for inflation (the rising cost of living) and for the cost of rising community living standards.
ATO term - Uses independent aggregated data sources to estimate the size of the theoretical tax base. These methods are typically used for indirect taxes.
Total and permanent disability (TPD) insurance
A type of life insurance that helps cover the cost of rehabilitation, debt repayments and the future cost of living if you are totally and permanently disabled. Each insurer has different definitions of what is and isn't considered to be permanently disabled, so always read the fine print so you know how the policy defines the cover.
total business income (TBI)
ATO term - All ordinary income earned in the ordinary course of running a business for the income year.
Defined in the Listing Rules as an interruption to trading at the request of an entity that is not a suspension from quotation.
An account with a financial institution where your money is readily available for day-to-day transactions.
Charges for any account transactions you conduct i.e. withdrawals, deposits, transfers.
Transfer balance cap
A lifetime cap on the amount of super that you can transfer into 'retirement phase accounts' to pay a tax-free income stream.
Transition to retirement scheme
A scheme that allows you to reduce working hours in the lead-up to retirement without reducing take-home pay, or to continue working full-time and make significant tax savings by salary sacrificing heavily into super and supplementing take-home pay with a super pension.
A type of life insurance that provides cover if you are diagnosed with a certain illness that will make a significant impact on your life, such as cancer or a stroke. Trauma insurance pays a set amount that can be used for things like medical costs, repaying debt, or adjustments to housing or lifestyle changes.
Lays down the rules for a Trust, its investment guidelines and how benefits will accrue to beneficiaries and account holders.
A person or firm that holds and administers property or assets for the benefit of a third party
Trustee (super fund)
People or a company appointed to manage a super fund on your behalf.
Securities that meet the legal requirements of relating to the use of funds by trustees.
Trusts, unit trusts
Collective fund which holds a portfolio of securities on behalf of the investors who hold units in the trust.