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48 Cards in this Set
- Front
- Back
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Back-End Load
Contingent Deferred Sales Charge (CDSC) |
A method of assessing a sales charge in variable annuities and mutual funds where the actual percentage of the sales charge is dependent upon the length of time that the investor holds the contract and is payable upon redemption of the shares.
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Backing Away
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The failure of the market maker to fulfill its obligation to buy or sell the minimum amount for a bona fide quote.
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Balanced Fund
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A type of mutual fund which has a balanced portfolio consisting of bonds and preferred stock (providing income) as well as common stock (providing growth potential).
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Balanced Program
Developmental Program Wildcatting |
An oil/gas drilling program which drills in both areas of known production an din unproven areas.
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Balance Sheet
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A condensed financial statement shoeing hte nature and amount of a company's assets, liabilities adn a net worth (shareholder equity) as of a given date.
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Balance Sheet Formula
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Basic Balance sheet equation.
Total Assets=Total Liabilities + Stockholders' Equity |
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Balloon Maturity
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A type of maturity schedule for an issue of bonds that shows a relatively small number of bonds maturing serially (each year) and a large number maturing in a later year.
(Also known as the time when balloons start shaving) |
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Bank Guarantee Letter
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The document supplied by an approved bank that certifies that a put writer has sufficient funds on deposit at the bank to equal the aggregate exercise price of the put.
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Banker's Acceptance (BA)
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A money-market instrument used to finance international and domestic trade. It is a check drawn on a bank by an importer or exporter of goods representing the bank's unconditional promise to pay the face amount of the note at maturity.
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Bankruptcy
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An inability to pay debts; insolvency. Creditors may petition the courts which results in involuntary bankruptcy. Voluntary bankruptcy results from the debtor petitioning for court protection. Chapter 11 of the bankruptcy code deals with "reorganization" which allows the debtor to remain in buisness and negotiate for the restructuring of debt.
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Banks for the Cooperative
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A government sponsored, privately owned enterprise that is part of the Fedral Farm Credit System. It provides short-term loans to farmers' cooperative associations.
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Basis
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(1) Bonds: An investor's yield to maturity.
(2) Taxation: Cost used to determine capital gain or loss on an investment. (3) Used in DPPs to calculate maximum losses allowed for tax purposes. in general, basis consists of the investor's original contribution plus recourse loans. |
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Basis Point
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A unit equal to 1/100 of 1% (0.01%) used in expressing variation in the yields of bonds. For example, the difference between 12.83% and 12.88% is 5 basis points.
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Bear
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Someone who believes the market will decline.
aka - Fozzy |
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Bear Market
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A declining market.
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Bear Spread
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An option spread position in which the investor profits from a decline in the underlying stock price (vs. Bull Spread)
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Bearer Bond
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A bond which does not have the owner's name registered on the books of the issuer. Interest is paid by means of attached coupons. Interest and principal when due, are payable to the holder.
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Beneficial Owner
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The person(s) entitled to the benefits of ownership even though another party (a broker or bank would be the nominal owner) acutally holds the security.
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Best Efforts
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An offering in which the investment banker agrees to distribute as much of the offering as possible and to return to the issuer any unsold shares.
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Beta
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A statistical measure of the price volatility of a security in relation to the entire stock market's volatility. For example, a Beta of 2.0 indicates a stock that is twice as volatile as the market as a whole. Often referred to as Systematic Risk
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Bid and Asked
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A term often referred to as a quotation or quote. The bid is the highest price anyone is willing to pay for a security at a given time and the asked is the lowest price anyone is willing to receive at the same time. Investors typically buy securitites at the ask price and sell at the bid price.
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Bid Form
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A document used to submit a bid to an issuer of a competitive municipal bond underwriting.
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Blind Pool
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A limited partnership that does not specifiy the assets or properties to be acquired.
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Block
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A large holding or transaction of stock (popularly considered to be 10,000 shares or more.)
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Blotter
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A record of daily activity such as orders placed and executed, securities received or delivered, etc.
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Blue Chip Stock
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A companyh known nationally for the quality and wide acceptance o fit s products or services, and for its ability to profit and pay dividents.
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Blue Sky Laws
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State securities regulations. Also refer to the model law on which manyh states base their regulations - the Uniform Securities Act
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Bond
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A debt issue or promissory note of a corporation, municipality, or the U.S government, usuallyl issued in multiples of $1,000 or $5,000 with maturities of more than ten years.
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Bond Anticipation Note (BAN)
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A short-term security issued by a municipality. Payment of the note at maturity will be accomplished with the proceeds of the bond issue.
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Bond Buyer
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The newspaper of the municipal industry containing news and announcements primarily related to new issues. The bond Buyer publishes a variety of statistics including the Visible Supply, Placement Ratio, Twenty Bond Index, Eleven Bond Index and Revenue Bond Index.
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Bond Counsel
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The attorney or law firm who reviews the legal docuemnts pertaining to a municipal new issue and who writes the legal opinion.
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Bond Equivalent Yield
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A discount yield restated to make it directly comparable to an interest bearing investment.
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Book-Entry
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A method of registering securities. There is no physical certificate, as evidence of ownership is reflected by an entry recorded on th ebooks of the issuer.
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Book Value
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The theoretical liquidation value of a company determined by adding all current and fixed assets and the deducting all debts, other liabilities and the liquidation price of any preferred issues. The sum arrived at is divided by the number of common shares outstanding and the result is book value per common share. Book value of the assets of a company or a security often has little correlation to the market value.
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Branch Office
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An office of a member firm where investment banking or securities business is conducted.
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Breakeven
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A situation where an investor closes a position without experiencing either gain or loss. For options, the market price of the underlying security that would result in an investor having no gain or loss.
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Breakout
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Movement of a stock price out of an established trading range either above a resistencen level or below a support level.
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Breakpoint
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The dollar level of an investment in a mutual fund at which a purchaser qualifies for a sales charge reduction.
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Breakpoint Sales
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Solicited sales at dollar amounts just below the point where a breakpoint (reduced sales charges) would occur. A breakpoint sale is a violation of industry rules.
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Broker
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An agent who handles the public's orders to buy and sell securities, commodities or other property. For this service a commission is charged.
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Broker's Broker
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A securities firm acting as agent on behalf of another securities frim.
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Broker's Loan
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Money borrowed by brokers from banks or otehr brokers for a variety of uses.
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Bull
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One who believes the market will rise.
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Bull Market
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An advancing market
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Bull Spread
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An option spread position in which the investor profits from a rise in the underlying security's price.
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Business Cycle
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The recurring periods of expansion and contraction in economic activity which affect inflation, unemployment, business profits and interest rates.
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Buy-In
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A procedure that is followed when the seller of a security falils to complete the contract by not delivering the securities according to the contract's terms. The buyer can close out the contract by buying the securities in the open market and charging the account of the seller who failed to complete the contract.
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Buying Power
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The dollar value of marginable securities which could be purchased by an investor in a margin account using SMA. Overall buying power is equal to two time the amount of SMA.
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