Letter B Vocabulary Flashcards
A fee or sales charge that is paid when selling a mutual fund or other investment.
Back-End Load
An investment fund that combines a stock and a bond portfolio, seeking both capital appreciation and income.
Balanced Fund
A type of chart that uses rectangular bars to represent data; in finance, often used to show the performance of stocks.
Bar Chart
The interest rate set by a country’s central bank, which influences other interest rates in the economy.
Base Rate
One one-hundredth of a percentage point (0.01%).
Basis Point
A market condition where stock prices are declining, typically by 20% or more from recent highs.
Bear Market
A pessimistic outlook or expectation that a security’s price will decline.
Bearish
A standard against which the performance of a security, mutual fund, or investment strategy can be compared.
Benchmark
A measure of a stock’s volatility in relation to the overall market.
Beta
The maximum price a buyer is willing to pay for a security.
Bid Price
The difference between the bid price of a security and its current market price.
Bid Spread
The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for a security.
Bid-Ask Spread
A large trading order, often involving many shares, typically negotiated off the trading floor or through the OTC market.
Block Trade
A stock from a well-established and financially sound company with a history of stable earnings and dividends.
Blue Chip Stock
Stocks representing companies that are recognized for their established record of stability, reliability, and performance.
Blue-Chip Stocks
A technical analysis tool consisting of two bands (one above and one below) and a moving average line, indicating volatility and price momentum.
Bollinger Bands
A debt security that represents an agreement between the issuer and the holder, where the issuer agrees to pay back the principal amount with interest at maturity.
Bond
An assessment of the creditworthiness of a bond issuer, often provided by credit rating agencies.
Bond Rating
The return an investor receives from a bond, calculated as annual interest payments divided by the bond’s current market price.
Bond Yield
The value of an asset as it appears on a company’s balance sheet, calculated by subtracting liabilities from assets.
Book Value
A volume discount level in mutual fund purchases, where the sales charge or load is reduced.
Breakpoint
An individual or firm that acts as an intermediary between buyers and sellers, typically charging a commission.
Broker
A person or firm in the business of buying and selling securities, operating both as a broker and a dealer, depending on the transaction.
Broker-Dealer
A market condition where stock prices are rising or are expected to rise.
Bull Market
An optimistic outlook or expectation that a security’s price will rise.
Bullish
The natural rise and fall of economic growth, characterized by periods of expansion and contraction.
Business Cycle
The repurchase of shares by a company, reducing the number of outstanding shares on the market.
Buyback
The purchase of a company’s shares, leading to the acquiring entity gaining control of that company.
Buyout
The side of the financial market that involves investment institutions like mutual funds and pension funds that buy securities.
Buy-Side
An analyst who works for institutional investors and provides recommendations for securities to be included in their portfolios.
Buy-Side Analyst
