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)
Filed Under: b by
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
Filed Under: b by
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
Filed Under: b by
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
Filed Under: b by
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
Filed Under: b by
Bid Size Total quantity of shares that a buyer is prepared to buy at the bid price quoted. … [Read more...]
Bidder
Filed Under: b by
Bidder Entity or individual showing intent to purchase a security or a business entity. … [Read more...]
Big Bang
Filed Under: b by
Big Bang Refers to liberalization of the London Stock Exchange in 1986. Automatic trading using computers was introduced then. … [Read more...]
Big Board
Filed Under: b by
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...]
Bill of Lading
Filed Under: b by
Bill of Lading Exporter – transporter contract wherein the transporter undertakes to transport goods provided stipulations limit his liability. Bill of lading is the receipt for these goods and also acts as proof of delivery or of receipt in future. … [Read more...]
Binomial Option Pricing Model
Filed Under: b by
Binomial Option Pricing Model Model for option pricing model wherein the underlying asset may assume only two discrete values that are possible, over the next period of time for each value taken in the period of time before. … [Read more...]
Black Economy
Filed Under: b by
Black Economy Portion of country’s economic activity that originates from sources that do not fall within the purview of the country’s commerce related rules and regulations. Such activities may be legal or illegal. … [Read more...]
Black-Scholes Option Pricing Model
Filed Under: b by
Black-Scholes Option Pricing Model Call option pricing model based on arbitrage arguments. The stock price, strike price, zero risk interest rate, standard deviation of return on the stock and time remaining until expiration are taken into account. … [Read more...]
Blanket Inventory Lien
Filed Under: b by
Blanket Inventory Lien Loan that is secured and offers the lender a lien against inventories held by borrower … [Read more...]
Blanket Mortgage
Filed Under: b by
Blanket Mortgage Mortgage that encompasses more than one real estate property. Although these properties are collateral for the mortgage, individual pieces can be sold without retiring the mortgage. … [Read more...]
Block House
Filed Under: b by
Block House Agencies that deal with brokerage transactions and help identify potential sellers and buyers for large block dealings. … [Read more...]
Block Trade
Filed Under: b by
Block Trade A trading order that is large, consisting of 10,000 shares or market value of at least $200,000. … [Read more...]
Block Voting
Filed Under: b by
Block Voting Shareholder group combining all their voting rights into one single block. … [Read more...]
