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Financial dictionary terms starting with “b”
B shares are a type of mutual fund share. They are distinguished from A shares and C shares by their load (fee) structure. See More.
The Babcock School of Management is the business school at Wake Forest University. See More.
Baby bells refer to the telephone companies that were created after the U.S. government required AT&T to divest assets in 1984 as part of a settlement for violating antitrust laws. See More.
A Baby Berkshire is a Class B share of Berkshire Hathaway (NYSE: BRK-B). The term also refers to the act of creating a portfolio of the same companies that Berkshire Hathaway invests in and then buying and selling proportionately when Berkshire Hatha See More.
Similar to how the U.S. Department of Justice forced the breakup of "Ma Bell" into seven "baby bells," Baby Bills refer to the companies that would have resulted from a breakup of Microsoft Corporation. (The term is a play on the name See More.
Baby bonds are bonds with a par value below $1,000. Additionally, the term also refers to savings bonds issued by the Treasury Department from 1935 to 1941. In the United Kingdom, the term refers to a tax-exempt savings program for children See More.
The baby boomer age wave theory, developed by economist Harry S. Dent, Jr., theorizes that the age of the baby boom generation can predict major changes in economic trends. See More.
A back door listing occurs when a private company acquires a publicly traded company and thus “goes public” without an initial public offering. See More.
Also called a far month contract, a back month contract is a futures contract that has an expiration date that is the farthest beyond the next approaching expiration date (called the “front month contract). See More.
Back months are the expiration dates of futures contracts that fall furthest from the nearest expiration date. See More.
In the finance world, a back office processes the day-to-day paperwork and record-keeping associated with trades, confirmations, settlements and other financial transactions. See More.
A back stop is a person or entity that purchases leftover shares from the underwriter of an equity or rights offering. See More.
A back up is an increase in a security’s price, yield, or spread before issuance. In other circles, back up means replacing a long-maturity security with a short-maturity security in order to capitalize on short-term interest rates that ar See More.
Back up the truck is slang for bullish sentiment about a market or security. See More.
A back-end load is a fee paid when an investor sells a specific investment. Back-end load mutual funds are often referred to as "B Shares." See More.
Banks use the back-end ratio to determine whether a mortgage applicant is a good credit risk. The formula for the back-end ratio, generally, is: Back-End Ratio = (All monthly loan payments + requested loan’s monthly principal and inte See More.
A back-stop purchaser buys leftover shares from the underwriter of an equity or rights offering. See More.
A back-to-back commitment is an agreement to buy a construction loan on a future date or make a second loan on a future date. See More.
Back-to-back letters of credit occur when a buyer gives a letter of credit to a seller, who then obtains a letter of credit for a supplier. See More.
With back-to-back loans two parties, each in a different country, lend money to each other in an effort to hedge against currency risk. They are also called parallel loans. See More.
In the finance world, backdating usually refers to the practice of changing the dates of option grants to one that is earlier than the actual grant date in order to place a lower exercise price on the options and thus enhance the potential profits fr See More.
In the merger world, a backflip takeover occurs when an acquirer becomes a subsidiary of its target. See More.
An accounting method whereby the costs associated with producing a good or service are recorded only after the good or service is actually produced, completed or sold. See More.
Backing away occurs when a market maker does not honor a quoted bid or ask price for a minimum quantity of a particular security. See More.
Frequently used in manufacturing industries, backlog refers to unfinished work or to customer orders that have been received but are either incomplete or in the process of completion. See More.
Backpricing is a method for pricing commodities, whereby the buyer and seller agree to buy/sell a commodity but set the price at a later date. See More.
A backspread is a trading strategy whereby the investor buys a set of options with one strike price and sells a similar set of options with a lower strike price. See More.
Backtesting is the process of applying a trading strategy or analytical method to historical data to see how accurately the strategy or method would have predicted actual results. See More.
A backup line is a bank promise that a commercial paper issuer will repay the maturing debt. See More.
Backup withholding is a way for the Internal Revenue Service to withhold taxes from a taxpayer who does not provide or have a taxpayer identification number or Social Security number. See More.
Backward integration refers to a company buying or internally producing parts of its supply chain. See More.
Backwardation describes a downward sloping forward curve in a commodity market. This means that as the price of a commodity for future delivery is lower than the spot price -- the price of a commodity today. See More.
A bad bank is a new company created to buy poorly-performing assets from another bank. See More.
A bad check is a check written on an account that doesn't have enough funds to cover the amount of the check. See More.
In business, bad debt is the portion of a loan or portfolio of loans a lender considers to be uncollectable. In personal finance, bad debt generally refers to high-interest consumer debt. See More.
Bad debt expense is the portion of accounts receivable that became uncollectable during a given period. See More.
Bad debt recovery is when a company is able to collect a payment that was previously classified as a bad debt. See More.
Bad debt reserve, also called an allowance for doubtful accounts (ADA), is a reduction in a company's accounts receivable. The bad debt reserve is the amount of receivables that the company does not expect to actually collect. See More.
Bad paper refers to uncollateralized bonds (typically with short maturities) that are poorly rated and at high risk of default. See More.
A bag holder is a person whose investment has become worthless or almost worthless. The investor is left "holding the bag." See More.
A bag man is a person who solicits contributions to political parties or political causes on behalf of someone else. See More.
"Bagel land" is a slang term that describes where investments go when their prices approach zero. See More.
"Bagging the street" refers to the strategy of profiting from price changes created by block trades. See More.
Baidu is a large search engine in China. The word translates to "hundreds of times." Its ticker symbol is BIDU. See More.
A bailee is a person who has been entrusted with custody of a piece of property. A bailee does not have ownership of the property. See More.
Bailee's customers insurance covers any damage or destruction that a bailee might do to a bailor's property. See More.
Bailment is a transfer of custody of a piece of property rather than a transfer of ownership of a piece of property. See More.
A bailout bond is intended to help ailing companies. Bailout bonds were most common in the 1980s and 1990s when many savings and loans were failing; they are less common now. See More.
Bait and switch is a sales tactic that tricks consumers into buying something other than an advertised item. See More.
A bait record is a fake file on a computer that is used to see whether anyone is improperly accessing data. See More.
The balance of payments (BOP) reflects all payments and obligations to foreigners vs. all payments and obligations received from foreigners. It's a record of all financial flows in and out of a country. In the United States, the Bureau of Economic An See More.
Balance of trade (BOT), also known as the trade balance, is the calculation of a country's exports minus its imports. See More.
Also called overdraft protection, balance protection is a feature on a checking account that prevents a customer from bouncing checks. See More.
Also known as claims reserves, balance sheet reserves are accounting entries that reflect money a company sets aside to pay future obligations. See More.
A balanced budget exists when a household's (or country's) revenues are equal to its expenses. See More.
A balanced fund is a mutual fund that generally keeps to a 50-50 mix of stock and bond investments. See More.
A balanced investment strategy is a method of portfolio allocation. See More.
In the bond world, balloon interest is an increase in the coupon rate of a bond issue corresponding to the maturity of the bond. Serial bonds often use balloon interest. See More.
A balloon maturity is a the date on which a large payment is due, usually at or near the end of a loan term.In the bond market, a balloon maturity refers to the idea that a large portion of an issuer's bonds become due at the same time. See More.
A balloon mortgage is a mortgage with a large payment made near or at the end of a loan term. See More.
A balloon payment is a large payment made at or near the end of a loan term. See More.
The Baltic Dry Index (BDI) is a leading economic indicator that measures demand for dry bulk shipping services worldwide relative to supply. See More.
The bandwagon effect is when people go along with what everyone else is doing. See More.
A bank card is a plastic card issued by a financial institution that allows the user to make purchases with funds either borrowed from or held at that financial institution. See More.
A bank card association is a company owned by one or more financial institutions that licenses credit card programs. See More.
Bank credit is an amount of funds that a person or business can borrow from a bank. See More.
In the finance world, a bank deposit is the placement of funds in an account with a bank. See More.
A bank deposit agreement, also called a Bank Investment Contract (BIC), is an agreement between a bank and an investor where the bank provides a guaranteed rate of return in exchange for keeping a deposit for a fixed amount of time (usually several m See More.
A bank efficiency ratio is a measure of a bank's overhead as a percentage of its revenue. See More.
A bank endorsement is an assurance that it will stand behind a check or other negotiable instrument that one of its customers creates. See More.
A bank examination is a regular process of ensuring that a bank or lending institution is financially stable and obeying regulations while avoiding excessive risk. The CAMELS is a system used to rate banks. See More.
A bank failure occurs when a regulator closes an insolvent bank. An insolvent bank can't meet its obligations to depositors (e.g., it doesn't have the money to meet withdrawal demands) or to creditors (i.e., it can't pay its debts). The Federal Re See More.
Based in Basel, Switzerland, the Bank for International Settlements (BIS) acts as a bank for central banks around the world. See More.
A bank guarantee is a promise from a bank or other lending institution that if a particular borrower defaults on a loan, the bank will cover the loss. Note that a bank guarantee is not the same as a letter of credit (see the differences between See More.
A bank identification number (BIN) identifies and verifies parts of a bank transaction. See More.
A bank investment contract (BIC), also sometimes called a Bank Deposit Agreement, is an agreement between a bank and an investor whereby the bank provides a guaranteed rate of return in exchange for keeping a deposit for a fixed period of time (sever See More.
Also called the federal discount rate, the bank rate is the interest rate at which a bank can borrow from the Federal Reserve. See More.
A bank reserve is a portion of a bank's deposits that are set aside in a liquid account to ensure that the bank has enough cash on hand to fulfill withdrawal requests. See More.
A bank run occurs when a flood of depositors withdraws funds from a bank within a short time frame. See More.
Bankmail is a bank's promise that it will finance a company's takeover bid and not help the other bidders. See More.
Bankruptcy is a legal process under which a borrower protects and/or liquidates assets in order to repay debts. See More.
The Barclays Capital U.S. Aggregate Bond Index is the most common index used to track the performance of investment grade bonds in the U.S. See More.
Also called negative goodwill, a bargain purchase occurs when a company buys an asset for less than its fair market value. Negative goodwill is the opposite of goodwill. See More.
A barrel of oil equivalent (or BOE) is a unit measure of unused energy resources. Expressed frequently in the financial statements of energy companies, BOEs are defined by the U.S. Internal Revenue Service as 1,700 kilowatt hours or as 5.8×106 Briti See More.
A barter (or bartering) is an exchange between two parties using goods and services for payment instead of currency. See More.
Basis refers to the original price of an asset. It is sometimes called cost basis or tax basis. See More.
A basis point is the smallest measure used in quoting yields on fixed income products. Basis points also pertain to interest rates. One basis point is equal to one one-hundredth of one percentage point (0.01%). Therefore, 100 basis points would be eq See More.
In economics, a basket of goods is a group of items used for price comparisons or other analytical purposes. See More.
A bear has a negative outlook on the market (belief that the value of an asset or market will decrease). See More.
A bear market is a period of several months or years during which securities prices consistently fall. The term is typically used in reference to the stock market, but it can also describe specific sectors such as real estate, bond or foreign ex See More.
A bear spread is a strategy used in options trading. A trader purchases a contract with a higher strike price and sells a contract with a lower strike price. This strategy is used to maximize profit of a decline in price while still limiting any loss See More.
A bearer bond, often called a coupon bond, is a bond whose certificate includes small detachable coupons. The coupons grant interest payments to the holder from the borrower. See More.
A bearish engulfing pattern occurs in the candlestick chart of a security when a large black candlestick fully engulfs the small white candlestick from the period before. This pattern usually occurs during an uptrend and is believed to signal th See More.
A bearish harami refers to a stock market trend indicating that the value of a stock is likely to experience a downwards, or bearish, momentum following a period of upward, bullish movement. See More.
Beginning inventory refers to the value of goods that a company has for its use or sale at the start of an inventory accounting period. See More.
Behavioral finance combines social and psychological theory with financial theory as a means of understanding how price movements in the securities markets occur independent of any corporate actions. See More.
The Beige Book is the informal name for the Federal Open Market Committee's (FOMC) ongoing reports titled Summary of Commentary on Current Economic Decisions by Federal Reserve District. See More.
In the finance world, a company goes belly up when it declares bankruptcy or goes out of business. See More.
In the bond world, below par means "below face value." Face value is the amount the issuer promises to pay the bondholder when the bond matures. See More.
Belt and suspenders is a term to describe a risk-averse person or situation. The term refers to the act of wearing redundant items to hold up a pair of pants. See More.
Ben S. Bernanke is the chairman of the United States Federal Reserve (the Fed). As Fed chairman, Bernanke also chairs the Board of Governors of the Federal Reserve and the Federal Open Market Committee (FOMC). See More.
A benchmark is a feasible alternative to a portfolio against which performance is measured. See More.
The beneficial owner is the individual or entity that enjoys the benefits of owning an asset, regardless of whose name the title of the property or security is in. See More.
A beneficiary is any person or organization that receives assets from a person after that person’s death. See More.
The best ask is the lowest price offered by a stock's market makers. For stocks, the best ask is quoted in dollars. For bonds, the best ask is quoted as a percentage of face value or (for Treasuries and other discount bonds) as a percentage disco See More.
The best bid is the highest price offered by a stock's market makers to buy a security. For stocks, the best bid is quoted in dollars. For bonds, the best bid is quoted as a percentage of face value or (for Treasuries and other discount bonds) as See More.
Best efforts is a legal agreement between a securities underwriter (usually an investment bank) and a securities issuer, whereby the underwriter agrees to do the best it can to sell as many of the issuer’s securities as possible to the public.& See More.
Best execution refers to the imperative that a broker, market maker, or other agent acting on behalf of an investor is obligated to execute the investor's order in a way that is most advantageous to the investor rather than the agent. See More.
The best-price rule refers to Securities and Exchange Commission (SEC) Rule 14d-10. This rule requires an entity making a tender offer for a certain class of shares to make the same offer to all the shareholders in that class. See More.
Beta is a measure of a stock's volatility relative to the overall market. It is most often calculated using a stock's movements relative to the S&P 500 Index over the trailing 12-month period. See More.
The Better Business Bureau (BBB) was born out of so-called ‘vigilance committees’ which arose in the early 1900s to correct advertising abuses and help facilitate consumer trust in the marketplace. There are more than 100 independently incorporat See More.
The bid price is the highest price that a prospective buyer is willing to pay for a specific security. The "ask price," is the lowest price acceptable to a prospective seller of the same security. The highest bid and lowest offer are quoted o See More.
Bid size is the number of shares a buyer is willing to purchase at a given price. For bond trading, bid size is measured in dollars. See More.
The bid-ask spread (also known simply as "the spread") is the difference between a security's bid price and its ask price. See More.
A big box store is a large company that is more efficient but less specialized than other firms in a particular niche or industry. See More.
A bill of lading is like a receipt -- it is an acknowledgement of the receipt of goods. A carrier often gives a shipper a bill of lading and an invoice when it is moving goods for the shipper. See More.
Black is slang for profit. Profit, also called net income, is the amount remaining after all costs, depreciation, interest, taxes, and other expenses have been deducted from total sales. Profit is also referred to as the bottom line, net profit, or n See More.
In the investing world, Black Friday refers to the gold crisis of September 24, 1869. It sometimes also refers to the New York Stock Exchange crash of September 19, 1873. In the retail world, Black Friday is the day after Thanksgiving (which See More.
Black Monday, also called "The Crash of 1987," refers to the 509-point fall in the Dow Jones Industrial Average on October 19, 1987. It also refers to October 28, 1929, when the DJIA fell 12.8%. See More.
Black Thursday refers to October 24, 1929, when panicked sellers traded nearly 13 million shares on the New York Stock Exchange (more than three times the normal volume at the time), and investors suffered $5 billion in losses. See More.
Black Tuesday refers to October 29, 1929, when panicked sellers traded nearly 16 million shares on the New York Stock Exchange (four times the normal volume at the time), and the Dow Jones Industrial Average fell -12%. Black Tuesday is often cited as See More.
The Black-Scholes model is a formula used to assign prices to European options. See More.
A blackout period is a time period of roughly 60 days during which a company's employees are unable to make changes to their savings or retirement plans. See More.
Blank check preferred stock refers to the issuance of a class of preferred shares where the board of directors has authority determining voting rights, dividends, and conversion without separate shareholder approval. See More.
Blanket bond refers to insurance coverage carried by banks and brokerage houses that protects against any losses incurred by unlawful or dishonest activity on the part of employees. It is also called a blanket fidelity bond or a fidelity bond. See More.
A blend fund, also called a hybrid fund, is a mutual fund composed of a combination of securities from different asset classes designed to increase diversification with just a single fund. See More.
A blue chip is a nationally recognized, well-established and financially sound company. The term comes from blue poker chips, which have the highest value in the game. See More.
Blue sheets are petitions for information from the Securities and Exchange Commission (SEC) to investment companies whose trading activity has resulted in significant price movements. See More.
Blue sky laws require the registration of brokers, brokerage firms and investment professionals in order to provide transparency of financial offerings and protect investors from investment fraud. Each state has its own blue sky law. See More.
A blue-chip stock is a stock of an established company that has consistently shown qualities like generating consistent earnings, paying generous dividends or increasing revenue. See More.
A "Bo Derek" is a so-called perfect investment. The term comes from the 1979 movie "10," starring the actress Bo Derek, who depicted "the perfect woman." See More.
The Board Certified in Estate Planning (BCE) certification is earned by brokers, advisors and financial planners who have demonstrated expertise in dealing with estate planning. See More.
A board of directors is a team of people elected by a corporation's shareholders to represent the shareholders' interests and ensure that the company's management acts on their behalf. The head of the board of directors is the chairman or See More.
The Board of Governors is the decision-making body at the Federal Reserve. See More.
A boiler room is a call center in which salespeople call potential investors in an attempt to sell risky, or even falsified, investment opportunities using aggressive and unethical tactics. See More.
Bollinger Bands are used as a technical analysis indicator. They are formed by using a 20-day moving average as a centerline and then tracing two bands, each one standard deviation wide, on either side of the moving average. By watching the share pri See More.
A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer and an investor, in which the bond issuer is obligated to pay a specified amo See More.
The bond equivalent yield (BEY) is a formula that allows investors to calculate the annual yield from a bond being sold at a discount. See More.
A bond ladder is an investment strategy whereby an investor staggers the maturity of the bonds in his/her portfolio so that the bond proceeds mature and can be reinvested at regular intervals. See More.
Bond laddering is a bond investment strategy whereby an investor staggers their portfolio with bonds according to their maturity so that the bond proceeds can be reinvested at regular intervals. See More.
A bond option is a derivative contract that allows investors to buy or sell a particular bond with a given expiration date for a particular price (strike price). See More.
A bond rating is a "grade" assigned to a bond. These ratings can also be assigned to bond issuers, insurance companies or other entities or securities to indicate riskiness. See More.
A bondholder is a person who owns a bond issued by a borrower, typically a company or a government. They are considered a creditor of a company. See More.
Book value refers to the total amount a company would be worth if it liquidated its assets and paid back all its liabilities. Book value can also represent the value of a particular asset on the company's balance sheet after taking acc See More.
Book value of equity per share, abbreviated as BVPS, is a company’s available equity to common shareholders apportioned by the number of outstanding common shares. "Book value” is based on the amount the company has invested in its assets, but See More.
A book-entry savings bond is a savings bond issued in electronic form rather than in paper form. See More.
Book-entry securities are securities issued in electronic form rather than in paper form. See More.
A company's book-to-bill ratio measures the company's number of outstanding orders as compared with the number of shipped or fulfilled orders. The book-to-bill ratio is a valuable tool for measuring the strength of the technology sector. See More.
Bootstrapping refers to the efforts of an entrepreneur to start a business using his own assets as the source of capital.Bootstrapping can also refer to a highly-leveraged transaction when an investor acquires a controlling interest in a company, fin See More.
Bottom fishing is an investment strategy in which investors seek out securities whose prices have recently dropped and are considered undervalued. See More.
The bottom line represents the number of sales dollars remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue. See More.
Bottom-up investing focuses on individual securities rather than on the overall movements in the securities market or the prospects of particular industries. See More.
When a check is refused by a bank and returned to the person who wrote it due to insufficient funds, it is called a bounced check. See More.
The Bovespa Index tracks around 50 stocks traded on the São Paulo Stock, Mercantile & Futures Exchange. The term Bovespa is derived from BOlsa de Valores do Estado de São Paulo, the Portugese name for the exchange. See More.
In the tax world, bracket creep occurs when inflation drives income up and into higher tax brackets. See More.
Brady bonds are U.S. Treasury bonds issued by developing countries in an effort to reduce these countries’ external debt. See More.
Breadth of market theory refers to a concept that the number of securities rising or falling in a market can predict the future strength of that market. See More.
A break-even analysis is a calculation of the point at which revenues equal expenses. In securities trading, the break-even point is the point at which gains equal losses. See More.
In economics, the break-even point is the point at which revenues equal expenses. In investing, the break-even point is the point at which gains equal losses. See More.
The break-even price is when the money received from the sale of a product covers the expenses associated with producing that product. See More.
In the mutual fund world, a breakpoint is the size of an investment that qualifies the investor for a lower load. See More.
Under the Bretton Woods Agreement of 1944, the world's allied industrial countries established a fixed currency exchange rate based on the gold standard. See More.
Brick and mortar is a term used to describe physical locations or outlets, typically in retail or other consumer facing businesses. The use of the term “brick and mortar” has evolved over the last two decades as the geometric proliferation of onl See More.
A bridge loan is a short-term, high-interest loan that provides a quick source of cash for commercial or individual needs. It is called a bridge loan because it serves as a bridge between one period of funding and another, more permanent source See More.
Broken dates are arbitrary maturity dates that do not necessarily match the duration of the bond, option, futures contract, forward contract or other maturing instrument. Broken dates are also known as odd dates. See More.
A broker is a person or a company that acts as an intermediary between buyers and sellers. Brokers exist not just in the financial markets, but in the real estate market, the commodities market, the art market -- even the boat market. See More.
A broker loan is a loan that the lender can obligate the borrower (a brokerage house) to repay at any time. See More.
The broker loan rate is the interest rate on bank loans made to brokerage firms that are borrowing to fund transactions in their clients' margins accounts. Sometimes the broker loan rate is also called the "call money rate.” It is a rat See More.
A broker of record is an insurance agent who manages an insurance policy with a carrier on behalf of a policyholder. See More.
A broker-dealer is an individual or company that buys and sells securities for its clients and for itself. Broker-dealers differ from plain-vanilla brokers, which can only buy and sell for their clients. Most brokerage firms are broker-dealers. See More.
A brokerage fee compensates a broker for executing a transaction. It is usually, but not always, a percentage of the transaction value. In finance, stockbrokers most often come to mind, but real estate agents and business brokers frequently charge br See More.
A brokered certificate of deposit (a brokered CD) is a CD sold by a brokerage firm. See More.
The Buffett Rule is a tax rule change included in President Barack Obama's 2013 budget proposal. If implemented, the rule would ensure that individuals who earn more than one million dollars per year pay a minimum effective tax ra See More.
Bulge bracket is a term used to describe the investment company(ies) with the highest volume of sales of an initial public offering (IPO) See More.
A bull has a positive outlook on an asset class or an entire market. In investing terminology, bull is the opposite of bear. See More.
A bull market is a period of several months or years during which asset prices consistently rise. The term is usually used in reference to the stock market, but it can describe specific sectors such as real estate, bonds or foreign exchange. See More.
The bull/bear ratio indicates overall investor sentiment in the market by comparing the number of bullish and bearish investors. This market indicator is calculated and published weekly by the Investors Intelligence Sentiment Survey. See More.
Bullet is usually short for bullet payment, which is typically a large payment made near the end of a loan that does not amortize over time. See More.
A bullet loan is a loan that does not amortize over time and must be repaid with a single large payment (also called a balloon payment) at the end of the term of the loan. See More.
A bullish engulfing pattern occurs in the candlestick chart of a security when a large white candlestick fully engulfs the smaller black candlestick from the period before. This pattern usually occurs during a down trend and is thought to signal See More.
A bump-up certificate of deposit (CD), also called a step-up CD, is a certificate of deposit that allows the owner to “bump up” the interest rate if rates should rise during the CDs’ holding period. A bump-up CD will typically offer a slight See More.
The Bureau of Labor Statistics (BLS) of the U.S. Department of Labor is a Federal agency that measures and reports labor market activity, working conditions and price changes in the economy. See More.
The Bureau of Public Debt is responsible for borrowing the money needed to run the U.S. government. They are also responsible for tracking the total amount of U.S. soverign debt. See More.
Burn rate is the amount of time it will take a company to exhaust its capital cushion. See More.
The business cycle refers to an economy's periodic patterns of growth, recession, and recovery. See More.
Business development company (BDC) is a designation specific to public firms that invest in small, upcoming businesses. BDCs hope their stakes in the businesses will increase in value as the business grows. BDCs also loan money to small enterprises a See More.
A business model is the strategy that a company uses to generate revenue from its product or service offering. See More.
Buy and hold is an investment strategy whereby an investor holds securities for the long-term, regardless of short-term market fluctuations. See More.
A buy limit order is an order to purchase a security at or below a given price. See More.
Firms that buy securities and assets for their own or their clients' accounts are said to be on the buy side. Institutional investors like mutual funds, pension funds, hedge funds, private equity funds, trusts, insurance companies and proprietary See More.
A buy-write is an options strategy whereby an investor writes (sells) a call option at the same time he/she buys the underlying. See More.
A buydown, also known as paying points, is a way to lower the interest rate on a mortgage. See More.
A buyer's market exists when there are more sellers than buyers in the market for a certain good or service. See More.
Buying on margin refers to borrowing from a brokerage firm (through a margin account) to make an investment. See More.
In the financial world, the phrase "buying power" has two meanings. One is the amount of money a person can use to invest in securities (and that can include money the investor borrows in order to buy securities). The other more common See More.
A buyout is the purchase of at least 51% of a company. Under a buyout, the previous ownership loses control over the company in exchange for compensation. See More.