Tariff War
DefinitionA Customs war, also known as a toll war or tariff war, is a type of economical conflict between two or more states. In order to pressure one of the states, the other raises taxes or tariffs for some of the products of that state. As a reprisal, the latter state may also increase the tariffs. Tariff War ...
Teaser Loan
By definition, a teaser loan, also called an adjustable rate mortgage loan, is where the interest is paid at a very low rate by the borrower, which eventually accelerates after a few years. The initial interest rates are artificial and temporary in nature. Teaser Loan: How do they work? The adjustable rate mortgage (ARM) requires a specific benchmark, such...
Tax Advisor
DefinitionA tax advisor or tax consultant is a person with advanced training and knowledge of tax law. The services of a tax advisor are usually retained in order to minimize taxation while remaining compliant with the law in complicated financial situations. Tax Advisors are also retained to represent clients before tax authorities and tax courts to resolve tax issues....
Treasury Inflation Protected Securities
Understanding TIPS Treasury Inflation Protected Securities (TIPS) is a low risk investment which is backed by the U.S government and aims to protect investors from incurring loss due to inflation. The investments are secured by indexing them directly with inflation; this means that their par value will keep on increasing as inflation increases in the economy but their interest...
Tax Avoidance
DefinitionTax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law. Tax sheltering is very similar, although unlike tax avoidance tax sheltering is not necessarily legal. Tax havens are jurisdictions which facilitate reduced taxes. Tax Avoidance...
Target-Benefit Plan
DefinitionA target benefit plan is a type of pension plan that is similar to a defined contribution plan in that it involves fixed contributions, or a fixed range of contributions, which are set independently of a plan's funded position. Benefits are based on affordability projections. Plan members share plan risk through adjustments to their benefits. Target-Benefit Plan What...
Taping Rule
What is 'Taping Rule' A rule created by the National Association of Securities Dealers (NASD) that requires that special supervisory procedures be put in place when a specific percentage of a firm's employees are hired from brokers/dealers that have been expelled or have had their registration revoked because they breached trading regulations. Explaining 'Taping Rule'...
Tandem Loan
What is 'Tandem Loan' Two loans taken out on one asset, which is usually a house; the secondary loan is normally added to a primary loan. A tandem loan may also refer to a lending facility that enables businesses to bridge the gap between commercial loans and other sources of funding, with loan proceeds used for working...
Tax And Price Index (TPI)
What is 'Tax And Price Index - TPI' A measure of the percentage that a consumer's income would have to adjust by in order to maintain the same level of purchasing power. The tax and price index (TPI) takes into account changes in retail prices due to inflation, as well as changes to direct taxes that reduce...
Take-Out Loan
What is a 'Take-Out Loan' A type of long-term financing (usually) on a piece of real property. Long-term take-out loans replace interim financing, such as a short-term construction loan. They are usually mortgages with fixed payments that are amortizing. Explaining 'Take-Out Loan' Take-out loans can be used for commercial real estate such as office...