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.

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Rebalancing

Realigning the proportions of assets in a portfolio as needed.


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