Base Probability of Loss Probability that expected return from the portfolio may not be achieved. … [Read more...]
Basic Balance
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Basic Balance Term used with balance of payments. Denotes the net balance when current account and capital account are combined. … [Read more...]
Basic Business Strategies
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Basic Business Strategies Firm’s key strategies that form a part of the business plan and will be pursued by the firm. … [Read more...]
Basic IRR Rule
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Basic IRR Rule States that a project should be accepted only if the IRR is higher than discount rate else rejected. … [Read more...]
Basing Point
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Basing Point Given location, usually manufacturing place for a commodity, used in basing point pricing system usually. … [Read more...]
Basis
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Basis In futures contracts, denotes the gap between the futures price in the market and the cash price. Also refers to the price paid by an investor for a security including any expenses incurred out-of-pocket. Helps determine capital losses or gains for taxation in a sale of stock. … [Read more...]
Basis Point
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Basis Point Term used with bonds. The least possible measure used for making yield quotes. 100 basis points equal one percentage point of bond yield. These points also are used to refer to rates of interest. … [Read more...]
Basis Price
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Basis Price Bond price as presented in terms of annual return rate or by comparing yield to maturity. … [Read more...]
Basis Risk
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Basis Risk The lack of certainty regarding the basis when a hedge may be removed. Price risk is substituted by basis risk by hedging. … [Read more...]
Basket Options
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Basket Options Package deals encompassing a currency exchange of more than two currencies against base currency at a given expiration date. The option buyer gets the right to receive the specified currencies at prevailing rates or at a predetermined rate. These options are used by … [Read more...]
Basket Trades
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Basket Trades Refer: Program trades. Orders for several trades that need to be carried out with minimum time lags between individual executions. … [Read more...]
Batch Trading
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Batch Trading Technique of trading in different securities by means of accumulating orders and executing them simultaneously. … [Read more...]
Bear
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Bear Refer: Bull. Investors who expect a stock or the market to decline. Usually a 20% decline or worse in stock prices over a long period indicates a bear market. … [Read more...]
Bearer Bond
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Bearer Bond Unregistered bonds held physically by owners but not appearing in the issuer’s books. The owner delivers the coupons that come with the certificate to the paying agent to get interest payments. … [Read more...]
Bear Market
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Bear Market A market where there is a fall in prices over a long period. … [Read more...]
Bear Raid
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Bear Raid Happens when big traders sell their positions in order to push prices to lower levels. … [Read more...]
Bear Spread
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Bear Spread Strategy used with options wherein purchase and sale takes place simultaneously using puts and calls with the aim of maximizing profit in event of decline in the price of the underlying security. Or Futures trading strategy wherein the aim is to maximize profit in event … [Read more...]
Before-Tax Profit Margin
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Before-Tax Profit Margin Net income prior to taxes compared with net sales in the form of a ratio. … [Read more...]
Beggar-Thy-Neighbor
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Beggar-Thy-Neighbor Trade policy followed internationally using competitive devaluations and enhanced restrictions for protection wherein a country aims to make profits at the cost of its partners in trade. … [Read more...]
Beggar-Thy-Neighbor Devaluation
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Beggar-Thy-Neighbor Devaluation Devaluation aimed at lowering a nation's currency value thereby increasing its exports to the cost of other countries. Often trade wars result from such devaluations. … [Read more...]
