Back End Load Fund Charge levied by mutual fund to redeem or sell shares. The fee ranges from 4 to 6%. A few funds with back-end load charge a full commission when shares are redeemed within a specified period. The longer the investor holds the shares, the lower the commission … [Read more...]
Back-to-Back Financing
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Back-to-Back Financing Intercompany loans that are facilitated through banks. … [Read more...]
Back-To-Back Letters Of Credit
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Back-To-Back Letters Of Credit Letters of credit used simultaneously to raise finances for buying equipment or services from subcontractors by a seller. One LC from the buyer's bank is established and the seller gets a second LC issued by his own bank with the beneficiary being the … [Read more...]
Back-to-Back Loan
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Back-to-Back Loan Inter company loan where companies in different countries borrow the currency of the other for a given period and agree to repay on a given date the other's currency. … [Read more...]
Back-up
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Back-up Market back up when bond yields and prices decline. Investor back up when he swaps one security into another with maturity of shorter term than the first. … [Read more...]
Backwardation
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Backwardation Opposite of contango. Circumstances existing in the market wherein futures prices are lesser in distant delivery months when compared with nearest delivery months. Happens when storage costs for the product until delivery date are reduced from current price. … [Read more...]
Baker Plan
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Baker Plan Treasury Secretary James Baker’s plan wherein 15 primary middle-income borrowing countries called the Baker 15, would adopt growth-oriented reforms at structural level. These reforms will receive the financial support of World Bank and commercial banks in the form of … [Read more...]
Balance of Payments
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Balance of Payments Compilation of statistics presented by sovereign nations assimilating all economic transactions carried out between residents and non residents over a specified time period. Generally, a calendar year is used as the time period. … [Read more...]
Balance of Trade
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Balance of Trade Country’s imports minus exports representing the net flow of goods in and out of the country. … [Read more...]
Balance Protection
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Balance Protection Coverage that can be opted for existing credit card accounts. A fee is charged for this service that is normally a percentage of the card’s balance. This fee is added to the card’s monthly statement. This protection generally covers minimum monthly payments in … [Read more...]
Balance Sheet
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Balance Sheet Also termed statement of financial condition. Contains a summarized outline of owners' equity, assets and liabilities. … [Read more...]
Balance Sheet Exposure
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Balance Sheet Exposure Refer: accounting exposure. Risk of fall in assets denominated in foreign currency when exchange rates decline. … [Read more...]
Balance Sheet Identity
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Balance Sheet Identity Total Assets = Total Stockholders' Equity plus Total Liabilities … [Read more...]
Balanced Fund
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Balanced Fund Also termed balanced mutual fund. Funds that purchase bonds, common stock, and preferred stock. … [Read more...]
Balanced Mutual Fund
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Balanced Mutual Fund Also termed balanced fund. Funds that purchase bonds, common stock and preferred stock. … [Read more...]
Balloon Maturity
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Balloon Maturity Big sums of principal payment that come attached with or without a sinking fund, that become due on maturity date of a loan or bond or loan. … [Read more...]
Balloon Loan
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Balloon Loan Loans that do not amortize completely over their own maturity term. The outstanding principal at maturity is repaid through a balloon payment. … [Read more...]
Bane
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Bane According to Warren Buffet’s description, Bill Bane Sr., is one of the few real traders in the markets. Carol, his wife, adores NASCAR and specializes in ‘pulling the legs off’ central bankers. Second son Cooper Bane is an artist. Third son Jackson, is a globally known chef and … [Read more...]
Bank Collection Float
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Bank Collection Float Time lag between the deposit of a check in a bank and the time when the depositor gets the actual funds. This period is when the payer’s bank is making the payment to the depositor’s. … [Read more...]
Bank Discount Rate
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Bank Discount Rate Rate of interest charged for money-market instruments with short-term maturity like CPs and T bills. Based on the par value and the amount of the discount for the instrument. … [Read more...]
