Bank Draft Drafts addressed to a bank. … [Read more...]
Bank Rating
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Bank Rating FDIC ratings or rating by private companies evaluating the bank’s safety and soundness. Thrift institutions are also rated in this manner. Usually a letter grade or numerical ranking is assigned to each rated institution based on assessment of capital amount, asset … [Read more...]
Bank Wire
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Bank Wire Computerized message network linking all major banks used for intimating receiving bank of any action that takes place such as deposit of funds into an account by a customer. … [Read more...]
Banker’s Acceptance
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Banker's Acceptance Credit investment with a short term maturity initiated by non-financial firm. A bank guarantees payment. Acceptances are sold or bought in the secondary market at discounted prices and are common in international trades. Money market funds usually invest in … [Read more...]
Bankers Bank
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Bankers Bank Special bank created by a bank group for servicing them alone and not the public. … [Read more...]
Bank for International Settlements (BIS)
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Bank for International Settlements (BIS) Stands for the international bank Switzerland, that is located in Basel. It functions as a central body for facilitating monetary cooperation between various central banks across Europe, the U.S. Federal Reserve System and the Bank of Japan. … [Read more...]
Bankruptcy
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Bankruptcy Circumstances wherein a firm or individual or other entity is not in a position to repay its debts. In such case the bondholders gain the ownership of assets from the stockholders. … [Read more...]
Bankruptcy Cost View
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Bankruptcy Cost View Concept / belief that predictable costs of bankruptcy, both indirect and direct set off the benefits of leveraging such that debt financing the entire firm is always more than the ideal leverage amount. … [Read more...]
Bankruptcy Financing
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Bankruptcy Financing Company arranged financing under the bankruptcy process (chapter 11). The high risk factors in such financing translates into high interest rates. … [Read more...]
Bankruptcy Risk
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Bankruptcy Risk Also termed default risk, insolvency risk. Risk arising from the possibility that the firm cannot fulfill debt obligations. … [Read more...]
Bankruptcy View
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Bankruptcy View Theory/ belief that predictable costs of bankruptcy eliminate the possibility that debt can completely finance a firm. … [Read more...]
Barbell Strategy
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Barbell Strategy Investment strategy wherein securities are chosen such that maturities are concentrated at both the extremes. … [Read more...]
Barefoot Pilgrim
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Barefoot Pilgrim Colloquial term used to denote novice investor who wipes out his/ her entire investment in stock market equity trades. … [Read more...]
Bargain Purchase Price Option
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Bargain Purchase Price Option Affords an option to lessee to buy an asset at a purchase price below prevailing market value at the end of the lease. … [Read more...]
BARRA’s Performance Analysis (PERFAN)
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BARRA's Performance Analysis (PERFAN) Berkeley consulting firm BARRA’s analysis method used by institutional investors to evaluate performance of money managers using performance attribution analysis. … [Read more...]
Barrier Options
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Barrier Options Exotic options that come with embedded trigger points. When these points are crossed, buy/ sell instructions on other options are automatically executed. … [Read more...]
Barriers To Entry
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Barriers To Entry Obstacles like excessive start-up costs that deter new businesses from entering an area of business or industry. These are beneficial to existing companies by affording protection to some degree from competition. … [Read more...]
Base Interest Rate
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Base Interest Rate Refer: Benchmark interest rate. Minimum rate required to make a non Treasury instrument attractive to investors. … [Read more...]
