Tag-Along Rights / Rights of Co-Sale: A minority shareholder protection affording the right to include their shares in any sale of control and at the offered price.

Takedown Schedule: A takedown schedule means the timing and size of the capital contributions from the limited partners of a venture fund.

Tax-free reorganizations: Types of business combinations in which shareholders do not incur tax liabilities. There are four types-A, B, C, and D reorganizations. They differ in various ways in the amount of stock/cash that can be offered. See Internal Revenue Code Section 368.

Tender offer: An offer to purchase stock made directly to the shareholders. One of the more common ways hostile takeovers are implemented.

Term Sheet: A summary of the terms the investor is prepared to accept. A non-binding outline of the principal points which the Stock Purchase Agreement and related agreements will cover in detail.

Time Value of Money: The basic principle that money can earn interest, therefore something that is worth $1 today will be worth more in the future if invested. This is also referred to as future value.

Top down investing - An approach to investing in which an investor first looks at trends in the general economy, and next selects industries and then companies that should benefit from those trends.

Total Return Swap - Any swap in which the non-floating rate side is based on the total return of an equity or fixed income instrument with a life longer than the swap. Total return swaps are most common in equity or physical commodity markets, but they can be used in fixed income markets where the non-domestic holder of a fixed income security would be subject to a withholding tax, but where the withholding tax may be avoided if the debt instrument is held by a domestic investor who pays the total return to a foreign investor by way of a total return swap. Total return swaps are also used to transfer credit exposure.

Tracking-Error - Tracking Error is measured by taking the square root of the average of the squared deviations between the investment's returns and the benchmark's returns. It indicates the degree to which a manager deviates from index returns. A tracking error of 2% or less tends to indicate that the portfolio will perform similar to the index. A tracking error of 3% or higher, indicating that the portfolio deviates considerably (either favorably or unfavorably) from its benchmark index, is considered to be more actively managed.

Trade sale: The sale of the equity share of a portfolio company to another company.

Transparency: The literal meaning of transparency is the state of being easily detected or seen through, readily understood, or free from pretense or deceit. Transparency in this sense refers to the ability of the investor to look through a hedge fund to its investment portfolio to determine compliance with the fund's investment guidelines and risk parameters, by examining a portfolio's positions.

Treasury Stock: Stock issued by a company but later reacquired. It may be held in the company's treasury indefinitely, reissued to the public, or retired. Treasury stock receives no dividends and does not carry voting power while held by the company.

Treynor - The Treynor ratio is similar to the Sharpe Ratio, except it uses beta as the volatility measure (to divide the investment's return over the risk free rate).