See: Zero-coupon bond.

Zero-coupon bond


Definition: A bond that does not pay periodic interest to the bondholder over its term as an ordinary bond does. Instead, it is sold for less than the amount called the face value, they will receive at the end of bond’s term (ie, the maturity date. The difference between what investors originally paid and eventually

Useful life


Definition: The period of time over which a company expects to get productive use out of a piece of equipment it has purchased.

Uptick rule


Definition: A rule put in place by the Securities and Exchange Commission (SEC) in 1938 to prevent sophisticated and wealthy investors from starting a downward spiral in the price of a stock. It says that a stock cannot be sold short by investors who believe it will go down in price (or who are trying to

Twelve Trailing Months (TTM)


Definition: An abbreviation for Twelve Trailing Months, it is used to note when annual financial figures such as sales and profits are shown for the immediately prior 12 months and not the last complete year. 

Treasury stock


Definition: Shares of its own stock that a company has purchased from investors to take them out of circulation and reduce the number of shares that are outstanding.

Top line


Discussed under: Sales

Sum of the years digits depreciation


Definition: A method of depreciation, used by companies to compute their income tax liabilities, that provides for greater depreciation in earlier years of a piece of equipment’s life than the straight-line method.

Strike price


Definition: The price at which the owner of an option can call shares away from (or put shares to) the investor who sold him the option.