T - Z
TICKER SYMBOL - see STOCK SYMBOL.
TRADE BALANCE - see MERCHANDISE TRADE BALANCE.
TRIPLE WITCHING - Occurs on the third Friday in March, June, September, and December, when the S&P futures contract, S&P index option contract, and options on individual stocks, all expire simultaneously. Triple Witching happens at these particular intervals because these investment instruments can be purchased in 3,6,9, and 12 month durations. On Triple Witching, markets are unusually very active as traders try to close out their positions, long or short, in the option they have or in the underlying stock. Dramatic price swings often occur on Triple Witching and even more so in the final hour of trading.
- QUADRUPLE WITCHING - The same as triple witching in the simultaneous expiration of the S&P futures contract, S&P index option contract, and options on individual stocks, but also includes the expiration of individual stock futures.
UNEMPLOYMENT RATE - a Department of Labor measure of the ratio of the number of unemployed people in the labor force, expressed as a percentage.
UNIT LABOR COSTS - a Department of Labor index based on the ratio of the Compensation Per Hour Index (nonfarm) and the Output Per Hour Index (nonfarm). Unit labor costs illustrate how productivity gains can offset rises in wages or how rises in wages undermine productivity gains.
VOLATILITY - Wide price swings that occur within a very short period of time. The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Since its introduction in 1993, VIX has been considered by many to be the world's premier barometer of investor sentiment and market volatility. See Introduction to VIX Futures and Options
WARRANT - A security that allows the owner the right to purchase a predetermined number of shares of stock from the issuer at a specific price at some point in the future. Expiration dates are usually within future years as compared to the duration of a call option, which is in future months. Unlike options, warrants are issued and guarenteed by the company. Warrants are usually offered in tandem with a fixed-income security provided as an incentive to the buyer.
YIELD - the dividend amount expressed as a percentage of the price of a stock.
YIELD CURVE - a measure of the relationship between short and long-term interest rates. Usually the rate on a (short-term) three-month Treasury bill is compared to the (long-term) 30 year Treasury Bond rate.
- The yield curve is positive when long term interest rates are higher than short term interest rates.
- When long and short term interest rates are about equal, the yield curve is flat.
- When short term interest rates are higher than long term interest rates, the yield curve is inverted.