Glossary 4 Flashcards
Backing Away
Illegal practice in which a dealer fails to honor a firm price quote.
Balance of payments
Difference between the amount of money that a country spends overseas and the amount it receives from overseas. The balance of payment is often divided into the current account and the capital account.
Balance Sheet
Portion of a financial statement detailing the company’s assets, liabilities, and stockholder’s equity.
Bank Qualified Issues
Municipal bonds with a feature attractive to banks: 80% of the interest that a bank pays on deposits that have been used to buy qualified bonds is tax deductible.
Banker’s Acceptance
Post-dated check sent by a domestic importer to a foreign exporter, when the check has been accepted or “guaranteed” by a bank. Exporters also initiate banker’s acceptances to transact their international business.
Bar Chart
Graph that exhibits the changing price of a security or group of securities over a certain period. Daily high and low prices are connected by a vertical bar, whereas opening and closing prices are often indicated by horizontal marks.
Basis point
One one-hundreth of a percent (0.01%); the smallest unit of measure for bond yields.
Bear Spread
A spread designed to bet that the price of the underlying stock will remain the same or fall. Short call spreads and long put spreads are bearish.
Beneficial Owner
Individual who owns the assets in an account, and who receives the profits or losses from trading in the account.
Beta
A number that indicates the price volatility of a stock or group of stocks compared to that of the market as a whole. The price of a stock with a beta of 1 is exactly as volatile as the market. The price of the stock with a beta of 2 is twice as volatile as the market.
Bid price or Bid
Highest price a potential buyer is willing to pay for a stock
Bid quote
Price at which a market maker is willing to buy stock
Bid wanted (BW)
Dealer’s request for a potential stock purchaser to suggest a price.
Big Board
Popular Term for NYSE