B-to-B or B2B: Business to business

Back fee: The fee paid on the extension date if the buyer wishes to continue the ...

Back office: Settlement and related processes where brokerage houses perform cleric ...

Back-end loan fund: A mutual fund that charges investors a fee to sell (redeem) shares, of ...

Back-end value: The amount paid to remaining shareholders in the second stage of a two ...

Back-to-back financing: An intercompany loan channeled through a bank.

Back-to-back loan: A loan in which two companies in separate countries borrow each other' ...

Back-up: (a) When bond yields and prices fall, the market is said to back-up. ( ...

Backwardation: A market condition in which futures prices are lower in the distant de ...

BACS: Bankers Automated Clearing Services

BAD: Bosnian Dinar from Bosnia and Herzegowina.

Bait and switch: An unethical sales technique where low priced goods are advertised but ...

Baker Plan: A plan by U.S. Treasury Secretary James Baker under which 15 principal ...

Balance of payments: A statistical compilation formulated by a sovereign nation of all econ ...

Balance of trade: Net flow of goods (exports minus imports) between countries.

Balance sheet: Also called the statement of financial condition, it is a summary of t ...

Balance sheet identity: Total Assets = Total Liabilities + Total Shareholders' Equity

Balanced fund: An investment company that invests in stocks and bonds. The same as a ...

Balanced mutual fund: This is a fund that buys common stock, preferred stock and bonds. The ...

Balloon maturity: Any large principal payment due at maturity for a bond or loan with or ...



Bandwidth: (n.) Jargon. Plan your work well least you run out of "bandwidth," or ...

Bang for the buck: The most impact or results for your money. "Brown tries to ge ...

Bank anticipation notes (BAN): Notes issued by states and municipalities to obtain interim financing ...

Bank discount basis: A convention used for quoting bids and offers for treasury bills in te ...

Bank draft: A draft addressed to a bank.

Bank for International Settlements (BIS): An international bank headquartered in Basel, Switzerland, which serve ...

Bank line: Line of credit granted by a bank to a customer.

Bank wire: A computer message system linking major banks. It is used not for effe ...

Banker's acceptance: A short-term credit investment created by a non-financial firm and gua ...

Bankrupt: This occurs when someone is unable to pay their debts and creditors m ...

Bankruptcy: State of being unable to pay debts. Thus, the ownership of the firm's ...

Bankruptcy cost view: The argument that expected indirect and direct bankruptcy costs offset ...

Bankruptcy risk: The risk that a firm will be unable to meet its debt obligations. Also ...

Bankruptcy view: The argument that expected bankruptcy costs preclude firms from being ...

Bar: Slang for one million dollars.

Barbell strategy: A strategy in which the maturities of the securities included in the p ...

Bargain-purchase-price option: Gives the lessee the option to purchase the asset at a price below fai ...

BARRA's performance analysis (PERFAN): A method developed by BARRA, a consulting firm in Berkeley, Californi ...

Barrier options: Contracts with trigger points that, when crossed, automatically genera ...

Barter economy: Trading of goods or services directly for other goods or services, wit ...



Base Currency: In terms of foreign exchange trading, currencies are quoted in terms o ...

Base probability of loss: The probability of not achieving a portfolio expected return.

Basel Committee on Banking Supervision: A committee that meets under the auspices of the Bank for Internationa ...

Basel II (Basel Capital Accord): Basel II - short for the new Basel Capital Accord - lays down new guid ...

Basic balance: In a balance of payments, the basic balance is the net balance of the ...

Basic business strategies: Key strategies a firm intends to pursue in carrying out its business p ...

Basic IRR rule: Accept the project if IRR is greater than the discount rate; reject th ...

Basis: Regarding a futures contract, the difference between the cash price an ...

Basis point: One hundredth of 1 percent (0.01%). In the bond market, the smallest m ...

Basis price: Price expressed in terms of yield to maturity or annual rate of return ...

Basis risk: The uncertainty about the basis at the time a hedge may be lifted. Hed ...

Basket options: Packages that involve the exchange of more than two currencies against ...

Batting average: Percentage of the time you are successful (from baseball). "T ...

Bayes rule: Treating probability as a logic, Thomas Bayes defined the following: ...

BBD: Barbados Dollar from Barbados.

BDT: Taka from Bangladesh.

Bear: An investor who believes a stock or the overall market will decline. A ...

Bear Hug: A takeover strategy in which the acquirer, without previous warning, m ...

Bear Market: An extended period of general price decline in an individual security, ...

Bear raid: A situation in which large traders sell positions with the intention o ...



Bearer bond: Bonds that are not registered on the books of the issuer. Such bonds a ...

BEC: Convertible Belgian Franc (no longer in use) from Belgium.

BEF: Belgian Franc (also known as Frank - no longer in use) from Belgium.

Before-tax profit margin: The ratio of net income before taxes to net sales.

Beggar-thy-neighbor: An international trade policy of competitive devaluations and increase ...

Beggar-thy-neighbor devaluation: A devaluation that is designed to cheapen a nation's currency and ther ...

BEL: Financial Belgian Franc (no longer in use) from Belgium.

Benchmark: Benchmarks generally refer to standards or averages by which similar i ...

Benchmark error: Use of an inappropriate proxy for the true market portfolio.

Benchmark interest rate: Also called the base interest rate, it is the minimum interest rate in ...

Benchmark issues: Also called on-the-run or current coupon issues or bellwether issues. ...

Beneficiary: The person(s), company, trust or estate named by the grantor, trustor, ...

BES: Business Expansion Scheme

Best-efforts sale: Best efforts is a method of securities distribution or underwriting in ...

Best-interests-of-creditors test: The requirement that a claim holder voting against a plan of reorganiz ...

Beta: The beta (β) is a statistical measure of market risk on a portfol ...

Beta equation: The beta of a security is determined as follows: [(n) (sum of ...

BFCE: Better, Faster, Easier, Cheaper

BFF: Burkina Faso Franc from Burkina Faso.

BGL: Lev from Bulgaria.

BHD: Bahraini Dinar from Bahrain.

Bid price: The price at which a market maker is prepared to buy a security.

Bid-asked spread: The difference between the bid and asked prices.

Bidder: A firm or person that wants to buy a firm or security.

BIF: Burundi Franc from Burundi.

Big Bang: Big Bang has two different geographical meanings: A major lau ...

Big Board: A nickname for the New York Stock Exchange. Also known as The Exchange ...

Big Figure: The first two or three digits of a foreign exchange price or rate. Exa ...

Big Four: In the UK, the Big Four refers to the four large clearing banks: Lloyd ...

Big Six: The Big Six referred to the former 6 big accountancy firms: KPMG, Pric ...

BIIBA: British Insurance and Investment Brokers Association

Bill of exchange: General term for a document demanding payment.

Bill of lading: A contract between the exporter and a transportation company in which ...

Bill of Materials (BOM): A BOM is a list of specifications that uniquely defines manufacturing ...

Binomial option pricing model: An option pricing model in which the underlying asset can take on only ...

BIS ratio: The BIS ratio gives an indication of the solvency of a bank. It gives ...

Black Friday: A precipitous drop in a financial market . The original Black Friday o ...

Black market: An illegal market.

Black Monday: The black monday refers to Monday 19th October 1987 when stock market ...

Black-Scholes model: The Black-Scholes model is the most commonly used formula when evaluat ...

Blank Check Preferred Stock: This is stock over which the board of directors has broad authority to ...

Blanket fidelity bond: SEC-required insurance coverage that brokerage firms are required to h ...

Blanket inventory lien: A secured loan that gives the lender a lien against all the borrower's ...

Blitzkrieg tender offer: In the context of a takeover, refers to a tender offer that is priced ...

Block house: Brokerage firms that help to find potential buyers or sellers of large ...

Block trade: A large trading order, defined on the New York Stock Exchange as an or ...

Block voting: A group of shareholders banding together to vote their shares in a sin ...

Blocked currency: A currency that is not freely convertible to other currencies due to e ...

Blockholder: The holder of a significant stake of a the ownership shares.

Blow-off top: A steep and rapid increase in price followed by a steep and rapid drop ...

Blue-chip company: Large and creditworthy company.

Blue-collar worker: A blue-collar worker is a working class employee who performs manual o ...

Blue-sky laws: State laws covering the issue and trading of securities.

BMD: Bermudian Dollar from Bermuda.

BND: Brunei Dollar from Brunei Dar-Es-Salaam.

Bo Derek: Jargon used to describe a perfect stock or investment. The term comes ...

Bo Derek stock: High quality stock.

BOB: Boliviano from Bolivia.

Bogey: The return an investment manager is compared to for performance evalua ...

Boil the Ocean: Try to solve too many problems with an overambitious project, typicall ...

Boilerplate: Standard terms and conditions.

Bon de souscription.: The French term for a stock purchase warrant.

Bond: A bond is a debt instrument requiring the issuer (also called the debt ...

Bond agreement: A contract for privately placed debt.

Bond covenant: A contractual provision in a bond indenture. A positive covenant requi ...

Bond equivalent yield: Bond yield calculated on an annual percentage rate method. Differs fro ...

Bond indenture: A contract or agreement between the issuer and the bondholder, which s ...

Bond indexing: Designing a portfolio so that its performance will match the performan ...

Bond points: A conventional unit of measure for bond prices set at $10 and equivale ...

Bond ratio: A ratio showing the portion of total capitalization represented by bon ...

Bond value: With respect to convertible bonds, the value the security would have i ...

Bond-equivalent basis: The method used for computing the bond-equivalent yield.

Bond-equivalent yield: The annualized yield to maturity computed by doubling the semiannual y ...

BONDPAR: A system that monitors and evaluates the performance of a fixed-income ...

Boning: Charging a lot more for an asset than it's worth.

Book: A banker or trader's positions.

Book cash: A firm's cash balance as reported in its financial statements. Also ca ...

Book profit: The cumulative book income plus any gain or loss on disposition of the ...

Book runner: The managing underwriter for a new issue. The book runner maintains th ...

Book value: A company's book value is its total assets minus intangible assets and ...

Book value per share: The intrinsic value of a company's stock. BVPS is calculated by dividi ...

Book-entry securities: The Treasury and federal agencies are moving to a book-entry system in ...

Booking Fee: Another term to describe a fee which is payable upfront to either sou ...

Boot camp: A training facility or program

Bootstrap transaction: A highly leveraged transaction (HLT)

Bootstrapped: Develop by yourself without outside support

Bootstrapping: In business, bootstrapping refers to the process of financing a busine ...

BOP: Bolivian Peso from Bolivia.

Borrow: To obtain or receive money on loan with the promise or understanding t ...

Borrower fallout: In the mortgage pipeline, the risk that prospective borrowers of loans ...

Börse: The German term for a stock exchange.

Bottom line: The net profit of a company

Bottom-up equity management style: A management style that de-emphasizes the significance of economic an ...

Bought deal: Security issue where one or two underwriters buy the entire issue.

Bourse: The French term for a stock exchange

Bracket: A term signifying the extent an underwriter's commitment in a new issu ...

Brady bonds: Brady bonds are issued by emerging countries under a debt-reduction pl ...

Branch: An operation in a foreign country incorporated in the home country.

BRC: Cruzeiro from Brazil.

Breadth index: A measurement of advances and declines in a trading period.

Break: A rapid and sharp price decline.

Break-even analysis: An analysis of the level of sales at which a project would make zero p ...

Break-even lease payment: The lease payment at which a party to a prospective lease is indiffere ...

Break-even payment rate: The prepayment rate of a MBS coupon that will produce the same CFY as ...

Break-even tax rate: The tax rate at which a party to a prospective transaction is indiffer ...

Breakout: In technical analysis , the movement of a stock's market value above r ...

Bretton Woods: Agreement An agreement signed by the original United Nations members i ...

Bridge financing: Interim financing of one sort or another used to solidify a position u ...

Bridging Loan: A short-term loan that acts as a bridge for the borrower until the bor ...

British clearers: The large clearing banks that dominate deposit taking and short-term l ...

British West Indies (BWI): In the Caribbean, including the UK-dependent territories of Anguilla, ...

BRL: Real from Brazil.

Broker: A broker is an agent who executes orders to buy or sell securities or ...

Brokered market: A market where an intermediary offers search services to buyers and se ...

BRR: Cruzeiro Real from Brazil.

BSD: Bahamian Dollar from Bahamas.

BTN: Ngultrum from Bhutan.

Bubble theory: Security prices sometimes move wildly above their true values.

Buck: Slang for one million dollars.

Budget: A detailed schedule of financial activity, such as an advertising budg ...

Budget deficit: The amount by which government spending exceeds government revenues.

Builder buydown loan: A mortgage loan on newly developed property that the builder subsidize ...

Bull: An investor who thinks the market will rise.

Bull CD, Bear CD: A bull CD pays its holder a specified percentage of the increase in re ...

Bull market: General market condition characterized by optimism, rising prices in s ...

Bull spread: A spread strategy in which an investor buys an out-of-the-money put op ...

Bull-bear bond: Bond whose principal repayment is linked to the price of another secur ...

Bulldog bonds: Foreign bonds issued in the United Kingdom.

Bulldog market: The foreign market in the United Kingdom.

Bullet contract: A guaranteed investment contract purchased with a single (one-shot) pr ...

Bullet loan: A bank term loan that calls for no amortization.

Bullet strategy: A strategy in which a portfolio is constructed so that the maturities ...

Bullion coins: Metal coins consisting of gold, silver, platinum, or palladium that ar ...

Bullish, bearish: Words used to describe investor attitudes. Bullish refers to an optimi ...

Bundling, unbundling: A trend allowing creation of securities either by combining primitive ...

Burn Rate: This term is particularly applicable to start up companies or to compa ...

Business cycle: Repetitive cycles of economic expansion and recession.

Business cycles: The patterns of fluctuation in growth patterns experienced by business ...

Business ethics: The application of moral standards to business situations.

Business failure: A business that has terminated with a loss to creditors.

Business risk: The risk that the cash flow of an issuer will be impaired because of a ...

Butterfly shift: A non-parallel shift in the yield curve involving the height of the cu ...

Buy in: To cover, offset or close out a short position.

Buy limit order: A conditional trading order that indicates a security may be purchased ...

Buy on close: To buy at the end of the trading session at a price within the closing ...

Buy on margin: A transaction in which an investor borrows to buy additional shares, u ...

Buy on opening: To buy at the beginning of a trading session at a price within the ope ...

Buy-and-hold strategy: A passive investment strategy with no active buying and selling of sto ...

Buy-back: Another term for a repo.

Buy-side analyst: A financial analyst employed by a non-brokerage firm, typically one of ...

Buyback: The covering of a short position by purchasing a long contract, usuall ...

Buydowns: Mortgages in which monthly payments consist of principal and interest, ...

Buying the index: Purchasing the stocks in the S&P 500 in the same proportion as the ind ...

Buyout: Purchase of a controlling interest (or percent of shares) of a company ...

BVPS: The intrinsic value of a company's stock. BVPS is calculated by dividi ...

BWP: Pula from Botswana.

BYR: Belarussian Rouble from Belarus (formerly Byelorussia)

BZD: Belize Dollar from Belize.

Did you know?

Bank anticipation notes (BAN)

Notes issued by states and municipalities to obtain interim financing for projects that will eventually be funded long term through the sale of a bond issue.


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