Bell Bell ring signifying the open or close of the trading day in an exchange, such as the NYSE. … [Read more...]
Bellwether Issues
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Bellwether Issues Related: Benchmark issues. Bond with coupons mimicking market rates. … [Read more...]
Benchmark
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Benchmark Performance of a given security group that is used as a basis for comparison. May follow published indexes or be customized to match the money manager’s strategy of investment. … [Read more...]
Benchmark Error
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Benchmark Error Use of incorrect benchmark in creating market portfolio under the CAPM model. … [Read more...]
Benchmark Interest Rate
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Benchmark Interest Rate Also termed base interest rate. Minimum interest rate that will be required to be offered on non-Treasury securities to make them attractive to investors. Related to yield to maturity on the latest Treasury security that has comparable-maturity. … [Read more...]
Benchmark Issues
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Benchmark Issues Also termed on-the-run issue, current coupon issue, bellwether issue. Latest Treasury issues in each maturity term in the secondary market. … [Read more...]
Benchmark Surplus
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Benchmark Surplus Insurance term used to refer to surplus amount arising from an additional capital source that is required as a cash flow supplement. When unforeseen contingencies disrupt the cash flow required to make future benefit payments by insurance company this additional … [Read more...]
Best Efforts Sale
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Best Efforts Sale Distribution or underwriting of securities where the firm undertakes to sell maximum possible securities and return unsold shares as much of the offering as possible and return any unsold portion to issuer. … [Read more...]
Best Interests of Creditors Test
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Best Interests of Creditors Test Stipulation that claim holders voting against a reorganization plan must get (at least) as much, in the event of liquidation, as the debtors get. … [Read more...]
Beta (Mutual Funds)
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Beta (Mutual Funds) Degree of risk in a fund or stock as compared with market risk. This risk is systematic and cannot be reduced by diversification. Beta of 0.7 denotes that total return from the fund will probably be equal to 70% of the fluctuation in the market. … [Read more...]
Beta Equation (Mutual Funds)
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Beta Equation (Mutual Funds) The calculation of beta in mutual funds is done as follows: [(n) (sum of (xy)) ]-[ (sum of x) (sum of y)] [(n) (sum of (xx)) ]-[ (sum of x) (sum of x)] Here : n = # of observations (36 months) x = return rate on the S&P 500 Index y = … [Read more...]
Beta Equation (Stocks)
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Beta Equation (Stocks) The calculation of beta in stocks is done as follows: [(n) (sum of (xy)) ]-[(sum of x) (sum of y)] [(n) (sum of (xx)) ]-[(sum of x) (sum of x)] Here: n = # of observations (24-60 months) x = return rate for the S&P 500 Index y = return rate for … [Read more...]
Betterment
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Betterment Expense that contributes towards improvement in an asset's performance or/ and enhancement in its value excluding general maintenance work on the asset. … [Read more...]
Biased Expectations Theories
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Biased Expectations Theories Refer: pure expectations theory. Related to foreign exchange, states that forward rates for a specific date are equal to spot rate at that point in time. … [Read more...]
Bid Price
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Bid Price Refer: Ask , offer. The quoted bid, or maximum price that an investor will pay for a security. Denotes the available price to make sale of the stocks. … [Read more...]
Bid Size
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Bid Size Total quantity of shares that a buyer is prepared to buy at the bid price quoted. … [Read more...]
Bidder
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Bidder Entity or individual showing intent to purchase a security or a business entity. … [Read more...]
Big Bang
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Big Bang Refers to liberalization of the London Stock Exchange in 1986. Automatic trading using computers was introduced then. … [Read more...]
Big Board
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Big Board Refers to New York Stock Exchange, Also called NYSE, The Exchange. Location: Wall Street, New York City. Over 2,000 common/ preferred stocks are listed here. NYSE was created in 1972 and is the largest exchange in the U.S. … [Read more...]
