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
Filed Under: b by
Batch Trading Technique of trading in different securities by means of accumulating orders and executing them simultaneously. … [Read more...]
Bear
Filed Under: b by
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
Filed Under: b by
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
Filed Under: b by
Bear Market A market where there is a fall in prices over a long period. … [Read more...]
Bear Raid
Filed Under: b by
Bear Raid Happens when big traders sell their positions in order to push prices to lower levels. … [Read more...]
Bear Spread
Filed Under: b by
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
Filed Under: b by
Before-Tax Profit Margin Net income prior to taxes compared with net sales in the form of a ratio. … [Read more...]
Beggar-Thy-Neighbor
Filed Under: b by
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
Filed Under: b by
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...]
Bell
Filed Under: b by
Bell Bell ring signifying the open or close of the trading day in an exchange, such as the NYSE. … [Read more...]
Bellwether Issues
Filed Under: b by
Bellwether Issues Related: Benchmark issues. Bond with coupons mimicking market rates. … [Read more...]
Benchmark
Filed Under: b by
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
Filed Under: b by
Benchmark Error Use of incorrect benchmark in creating market portfolio under the CAPM model. … [Read more...]
Benchmark Interest Rate
Filed Under: b by
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
Filed Under: b by
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
Filed Under: b by
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
Filed Under: b by
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
Filed Under: b by
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)
Filed Under: b by
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...]
