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...]
Base Probability of Loss
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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...]
