A B C D E-F G H I-J K-L M-N O P Q R S T U V-Z

T
Teach-in
To educate the sales force about an upcoming IPO, the lead manager will sponsor a teach-in during which time the management of the IPO will make a presentation to the sales force and answer their questions. This event normally occurs at the launch of the road show.

Tombstone
When an IPO is completed, the underwriting group advertises their involvement by publishing a list of underwriters in the financial press. The underwriters are listed in descending order of importance. The lead manager's name appears on the upper most left.

Tracking Stocks
When a parent company wants to recognize the underlying value of one of its businesses, it can either spin off a portion of the shares of the company to the public, thus establishing a value for the business, or it can issue tracking stock. Unlike the shares of a spin-off, which have claim to the assets and profits of the spun-off company, a tracking share has no such claim. As the term states, the shares are meant to "track" the performance of that particular business. A parent company may choose to issue tracking stock because it wants to retain full voting control over the business or because the assets of the division cannot be easily separated from the parent. Tracking stock is also called letter stock. Examples of tracking stocks are: GME (GM's EDS division), GMH (GM's Hughes division), ZD Net (Ziff Davis's Internet division) and DLJ Direct (Donaldson Lufkin Jenrette's online brokerage business).

Tranche
A French word used to describe segments of the IPO being sold in different countries. A multi-tranche distribution is commonly used for large U.S. and foreign IPOs where there is demand both in the U.S. and in their home country.

 

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