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Superglossary - Finance
Category: Economy and Finance > Finance
Date & country: 16/12/2013, US
Words: 5410

Best-Interests-Of-Creditors Test
The requirement that a claim holder voting against a plan of reorganization must receive at least as

Bests Rating
A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obl

The measure of a fund's or a stock's risk in relation to the market or to an alternative benchmark.

Beta Equation (Security)
The market beta of a security is determined as follows

Bi-Weekly Mortgage Loan
A mortgage loan on which interest and principal payments are made every half-month (total of 26 paym

Biased Expectations Theories

The price a potential buyer is willing to pay for a security. Sometimes also used in the context of

Bid Away
Refers to over-the-counter trading. Bid from another dealer exists at the same (listed) or higher (O

Bid Price
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practi

Bid Wanted
Used in the context of general equities. Announcement that a holder of securities wants to sell and

Bid-Asked Spread
The difference between the bid and the asked prices.

Bid-To-Cover Ratio
The ratio of the number of bids received in a Treasury security auction compared to the number of ac

A firm or person that wants to buy a firm or security.

Bidding Buyer
In the context of general equities, a nonaggressive buyer who prefers to await a natural seller in t

Bidding Through The Market
In the context of general equities, aggressive willingness to purchase a security at a premium to th

Bidding Up
Moving the bid price higher.

Big Bang
The term applied to the liberalization in 1986 of the London Stock Exchange (L.S.E.) when trading wa

Big Board
A nickname for the New York Stock Exchange (NYSE). Also known as The Exchange. More than 2,000 commo

Big Picture
To highlight trading interest due to the size of the trade.

Big Producer
A successful broker who generates a large volume of commission. See Rainmaker.

Big Uglies
Unpopular stocks.

Bill Of Exchange
General term for a document demanding payment.

Bill Of Lading
A contract between an exporter and a transportation company in which the latter agrees to transport

Billing Cycle
The time elapsed between billing periods for goods sold or services rendered.

An amount of money paid to indicate good faith in a transaction before the transaction is completed.

Binomial Option Pricing Model
An option pricing model in which the underlying asset can assume one of only two possible, discrete

Black Friday
A precipitous drop in a financial market . The original Black Friday occurred on September 24, 1869,

Black Market
An illegal market.

Black Monday
Refers to October 19, 1987, when the Dow Jones Industrial Average fell 508 points on the heels of sh

Black-Scholes Option-Pricing Model
A model for pricing call options based on arbitrage arguments. Uses the stock price, the exercise pr

Blank Check
A check that is duly signed, but the amount of the check is left blank to be supplied by the drawee.

Blank Check Offering
An initial public offering by a company whose business activities are undefined and therefore specul

Blanket Fidelity Bond
SEC-required insurance coverage that brokerage firms are required to have in order to cover fraudule

Blanket Inventory Lien
A secured loan that gives the lender a lien against all the borrower's inventories.

Blanket Recommendation
A recommendation by a brokerage firm sent to all its customers advising that they buy or sell a part

Blind Pool
A limited partnership that does not announce its intentions as to what properties will be acquired.

Blind Trust
A trust in which a fiduciary third party has total discretion to make investments on behalf of a ben

Blitzkrieg Tender Offer
In the context of a takeover, refers to a tender offer that is priced so attractively that the tende

Large quantity of stock or large dollar amount of bonds held or traded. As a rule of thumb, 10,000 s

Block Call
In the context of general equities, conference meeting during which customer indications and orders,

Block House
Brokerage firms that help to find potential buyers or sellers of large block trades.

Block List
In the context of general equities, listing of stock the investment bank is looking for (wants to bu

Block Trade
A large trading order, defined on the New York Stock Exchange as an order that consists of 10,000 sh

Block Trader
A dealer who will take a position in the block trades to accommodate customer buyers and sellers of

Block Voting
Descirbes a group of shareholders banding together to vote their shares in a single block.

Blocked Currency
A currency that is not freely convertible to other currencies due to exchange controls.

Blow-Off Top
A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen in

The rapid sale of all shares in a new securities offering. See

Blue List
Daily financial publication featuring bonds offered for sale by dealers and banks that represent bil

Blue-Chip Company
Used in the context of general equities. Large and creditworthy company. Company renowned for the qu

Blue-Sky Laws
State laws covering the issue and trading of securities.

Bo Derek Stock
High quality stock.

Board Broker
Employee of the Chicago Board Options Exchange who manages away from the market orders, which cannot

Board Of Directors
Individuals elected by the shareholders of a corporation who carry out certain tasks established in

Board Room
A room at a brokerage firm where its clients can watch an electronic board displaying stock prices a

The return an investment manager is compared to for performance evaluation.

Boiler Room
Used to describe place or operation in which unscrupulous salespeople call and try to sell people sp

Standard terms and conditions.

Spanish for stock exchange.

Used for listed equity securities. Block trading version of COLT.

Bonds are debt and are issued for a period of more than one year. The U.S. government, local governm

Bond Agreement
A contract for privately placed debt.

Bond Anticipation Note (BAN)
A short-term debt instrument issued by a state or municipality to borrow against the proceeds of an

Bond Broker
A broker on the floor of an exchange who trades bonds.

Bond Buyer
A daily publication featuring many essential statistics and index figures relevant to the fixed inco

Bond Buyers Municipal Bond Index
A municipal bond price tracking index published daily by the Bond Buyer.

Bond Counsel
An attorney who prepares the legal opinion concerning a municipal bond issue.

Bond Covenant
A contractual provision in a bond indenture. A positive covenant requires certain actions, and a neg

Bond Crowd
Members of the stock exchange who transact bond orders on the floor of the exchange.

Bond Discount
The difference by which a bond's market price is lower than its face value. The antithesis of a bond

Bond Equivalent Yield
Bond yield calculated on an annual percentage rate method. Differs from annual effective yield.

Bond Indenture
Contract that sets forth the promises of a corporate bond issuer and the rights of investors.

Bond Indexing
Designing a bond portfolio so that its performance will match the performance of some bond index.

Bond Market Association
An international trade association of broker/dealers and banks in U.S. government and federal agency

Bond Mutual Fund
A mutual fund holding bonds.

Bond Points
A conventional unit of measure for bond prices set at $1 and equivalent to 1% of the $100 face value

Bond Power
A form used in the transfer of registered bonds from one owner to a different owner.

Bond Rating
A rating based on the possibility of default by a bond issuer. The ratings range from AAA (highly un

Bond Ratio
The percentage of a company's capitalization represented by bonds. The ratio is calculated by dividi

Bond Swap
The sale of one bond issue and purchase of another bond issue simultaneously. See

Bond Value
With respect to convertible bonds, the value the security would have if it were not convertible. Tha

Bond-Equivalent Basis
The method used for computing the bond-equivalent yield.

The firm often has stockholders and bondholders. In a liquidation, the bondholders have first priori

A system that monitors and evaluates the performance of a fixed income portfolio, as well as the ind

Corporate bonds arranged so that specified principal amounts become due on specified dates. Related:

Charging a lot more for an asset than its worth.

A banker or trader's positions.

Book Cash
A firm's cash balance as reported in its financial statements. Also calledledger cash.

Book Profit
The cumulative book income plus any gain or loss on disposition of assets.

Book Runner
The managing underwriter for a new issue. The book runner maintains the book of securities sold.

Book To Bill
In the context of general equities, high-technology industry's demand to supply ratio of orders on a

Book Value
The value of an asset for accounting purposes. For assets where depreciation is taken or reserves bo

Book Value
A company's total assets minus intangible assets and liabilities, such as debt. A company's book val

Book Value Per Share
The ratio of stockholder equity to the average number of common shares. Book value per share should

Book-Entry Securities
System in which securities are not represented by paper certificates but are maintained in computeri

Term used to describe the start-up of a company with very little capital.

Creating a theoretical spot rate curve using one yield projection as the basis for the yield of the

To obtain or receive money on loan with the promise or understanding that it will be repaid.

Borrowed Reserves
Funds borrowed from a Federal Reserve Bank by member banks to maintain the required reserve ratios.

Borrower Fallout
In the mortgage pipeline, the risk that prospective borrowers of loans committed to be closed will e