Buyout Acquisition of a controlling interest or controlling share of stock of a company. Borrowed funds are used to facilitate leveraged buy-outs. … [Read more...]
Butterfly Shift
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Butterfly Shift Shift in the yield curve that is not parallel and involves the curve’s height. … [Read more...]
Bill of Exchange
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Bill of Exchange Refers to any document containing a payment demand. … [Read more...]
Bank Discount Basis
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Bank Discount Basis Conventional method used in making bid and offer quotes for T bills, using a 360 day year as basis in terms of annualized yield. … [Read more...]
BAN- Bank Anticipation Notes
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BAN- Bank Anticipation Notes State or municipality issued note to raise interim funds for projects proposed to be funded by bond issue in the long term. … [Read more...]
BASIC- Banking And Securities Industry Committee
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BASIC- Banking And Securities Industry Committee Committee set up in 1970 that oversees processing of stock certificates and options by standardizing and automating the procedures involved. … [Read more...]
BEY- Bond Equivalent Yield
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BEY- Bond Equivalent Yield Annualized yield to maturity calculated by doubling the yield achieved semiannually. … [Read more...]
Back Fee
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Back Fee A fee payable by buyer for continuation of an option to a specified extension date. … [Read more...]
Back Office
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Back Office Clerical operations in a brokerage house that support though they do not actually involve stock or securities trading. For example, written confirmation of trades and settlement, record upkeep, compliance with regulations. … [Read more...]
Back End Load Fund
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Back End Load Fund Charge levied by mutual fund to redeem or sell shares. The fee ranges from 4 to 6%. A few funds with back-end load charge a full commission when shares are redeemed within a specified period. The longer the investor holds the shares, the lower the commission … [Read more...]
Back-to-Back Financing
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Back-to-Back Financing Intercompany loans that are facilitated through banks. … [Read more...]
Back-To-Back Letters Of Credit
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Back-To-Back Letters Of Credit Letters of credit used simultaneously to raise finances for buying equipment or services from subcontractors by a seller. One LC from the buyer's bank is established and the seller gets a second LC issued by his own bank with the beneficiary being the … [Read more...]
Back-to-Back Loan
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Back-to-Back Loan Inter company loan where companies in different countries borrow the currency of the other for a given period and agree to repay on a given date the other's currency. … [Read more...]
Back-up
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Back-up Market back up when bond yields and prices decline. Investor back up when he swaps one security into another with maturity of shorter term than the first. … [Read more...]
Backwardation
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Backwardation Opposite of contango. Circumstances existing in the market wherein futures prices are lesser in distant delivery months when compared with nearest delivery months. Happens when storage costs for the product until delivery date are reduced from current price. … [Read more...]
Baker Plan
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Baker Plan Treasury Secretary James Baker’s plan wherein 15 primary middle-income borrowing countries called the Baker 15, would adopt growth-oriented reforms at structural level. These reforms will receive the financial support of World Bank and commercial banks in the form of … [Read more...]
Balance of Payments
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Balance of Payments Compilation of statistics presented by sovereign nations assimilating all economic transactions carried out between residents and non residents over a specified time period. Generally, a calendar year is used as the time period. … [Read more...]
Balance of Trade
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Balance of Trade Country’s imports minus exports representing the net flow of goods in and out of the country. … [Read more...]
Balance Protection
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Balance Protection Coverage that can be opted for existing credit card accounts. A fee is charged for this service that is normally a percentage of the card’s balance. This fee is added to the card’s monthly statement. This protection generally covers minimum monthly payments in … [Read more...]
