{"id":1079,"date":"2013-11-09T11:56:44","date_gmt":"2013-11-09T11:56:44","guid":{"rendered":"http:\/\/192.168.0.202\/en\/?p=1079"},"modified":"2016-08-01T15:06:30","modified_gmt":"2016-08-01T15:06:30","slug":"b","status":"publish","type":"post","link":"https:\/\/www.futuresandoptions.gr\/en\/b\/","title":{"rendered":"B"},"content":{"rendered":"<p>Back-end loan fund<br \/>\nA mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. Some back-end load funds impose a full commission if the shares are redeemed within a designated time period after purchase, such as one year, reducing the commission the longer the investor holds the shares. The formal name for the back-end load is the contingent deferred sales charge, or CDSC.<\/p>\n<p>Back months<br \/>\nThe futures or options on futures months being traded that are furthest from expiration.<\/p>\n<p>Back office<br \/>\nBrokerage house clerical operations that support, but do not include, the trading of stocks and other securities. All written confirmation and settlement of trades, record keeping, and regulatory compliance happen in the back office.<\/p>\n<p>Backwardation<br \/>\nA market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month.<\/p>\n<p>Balance of payments<br \/>\nA statistical compilation formulated by a sovereign nation of all economic transactions between residents of that nation and residents of all other nations during a stipulated period of time, usually a calendar year.<\/p>\n<p>Balance of trade<br \/>\nNet flow of goods (exports minus imports) between two countries.<\/p>\n<p>Balanced fund<br \/>\nAn investment company that invests in both stocks and bonds.<\/p>\n<p>Balance sheet<br \/>\nAlso called the statement of financial condition, a summary of the assets, liabilities, and owners\u2019 equity.<\/p>\n<p>Balloon maturity<br \/>\nAny principal due at maturity for a bond with a sinking fund requirement.<\/p>\n<p>Bank anticipation notes (BAN)<br \/>\nNotes issued by states and municipalities to obtain interim financing for projects that will eventually be funded longterm through the sale of a bond issue.<\/p>\n<p>Bank for International Settlements (BIS)<br \/>\nAn international bank headquartered in Basel, Switzerland, which serves as a forum for monetary cooperation among several European central banks, the Bank of Japan, and the US Federal Reserve System. Founded in 1930 to handle the German payment of World War I reparations, it now monitors and collects data on international banking activity and promulgates rules concerning international bank regulation.<\/p>\n<p><a title=\"Bank run (bank panic)\" href=\"http:\/\/192.168.0.202\/en\/bank-run-bank-panic\/\" target=\"_blank\">Bank run (bank panic)<\/a><\/p>\n<p>Bank discount basis<br \/>\nA convention used for quoting bids and offers for Treasury bills in terms of annualized yield based on a 360-day year.<\/p>\n<p>Bankers acceptance<br \/>\nA security representing a bank\u2019s promise to repay a loan created in a commercial transaction in case the debtor fails to perform. Commonly used in international transactions.<\/p>\n<p>Barbell strategy<br \/>\nA strategy in which the maturities of the securities included in the portfolio are concentrated at two extremes.<\/p>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- 468x60, \u03b4\u03b7\u03bc\u03b9\u03bf\u03c5\u03c1\u03b3\u03ae\u03b8\u03b7\u03ba\u03b5 6\/8\/2010 --><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:inline-block;width:468px;height:60px\"\n     data-ad-client=\"ca-pub-8884023723313114\"\n     data-ad-slot=\"5444360416\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/p>\n<p>BARRA\u2019s performance analysis (PERFAN) factor model<br \/>\nA method developed by BARRA, a consulting firm in Berkeley, California, which is commonly used by institutional investors applying performance attribution analysis to evaluate their money managers\u2019 performances.<\/p>\n<p><a title=\"Barrier options\" href=\"http:\/\/192.168.0.202\/en\/barrier-options\/\">Barrier options<br \/>\n<\/a><\/p>\n<p>Base probability of loss<br \/>\nThe probability of not achieving a portfolio expected return.<\/p>\n<p>Basis<br \/>\nRegarding a futures contract, the difference between the cash price and the futures price observed in the market.<\/p>\n<p>Basis risk<br \/>\nThe uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for price risk.<\/p>\n<p>Basket trades<br \/>\nProgram trades.<\/p>\n<p>Bearish<br \/>\nAn adjective describing an opinion or outlook that expects a decline in price, either by the general market or by an underlying stock, or both. See also Bullish.<\/p>\n<p><a title=\"Bear Spread\" href=\"http:\/\/192.168.0.202\/en\/bear-spread\/\">Bear Spread<\/a><\/p>\n<p><a title=\"Beta\" href=\"http:\/\/192.168.0.202\/en\/beta\/\">Beta<\/a><\/p>\n<p>Bear market<br \/>\nAny market in which prices are in a declining trend.<\/p>\n<p>Bear trap<br \/>\nThe predicament facing short sellers when a bear market reverses its trend and becomes bullish. The assets continue to sell in anticipation of further declines in price, and short sellers then are forced to cover at higher prices.<\/p>\n<p>Before-tax profit margin<br \/>\nThe ratio of net income before taxes to net sales.<\/p>\n<p>Benchmark<br \/>\nThe performance of a predetermined set of securities, for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy.<\/p>\n<p>Benchmark interest rate<br \/>\nAlso called the base interest rate, the minimum interest rate that investors will demand for investing in a non-Treasury security. The yield to maturity offered on a comparable-maturity Treasury security that was most recently issued (\u201con-the-run\u201d).<\/p>\n<p>Bid Price<br \/>\nThe price at which a buyer is willing to buy an option or stock.<\/p>\n<p><a title=\"Bitcoin\" href=\"http:\/\/192.168.0.202\/en\/education\/bitcoin\/\">Bitcoin<\/a><br \/>\nBitcoin is an experimental, decentralized digital currency that enables instant payments to anyone, anywhere in the world.<\/p>\n<p>Black Friday<br \/>\nA precipitous drop in a financial market . The original Black Friday occurred on September 24, 1869, when prospectors attempted to corner the gold market.<\/p>\n<p>Black-Scholes option-pricing model<br \/>\nA model for pricing call options based on arbitrage arguments that uses the stock price, the exercise price, the risk-free interest rate, the time to expiration, and the standard deviation of the stock return.<\/p>\n<p>Block trade<br \/>\nA large trading order, defined on the New York Stock Exchange as an order that consists of 10,000 shares of a given stock or that has a total market value of $200,000 or more.<\/p>\n<p>Blue chip stocks<br \/>\nCommon stock of well-known companies with a history of growth and dividend payments.<\/p>\n<p>Bollinger Bands<br \/>\nBollinger Bands Plus or minus two standard deviations where the standard deviations are calculated historically in a moving window estimation. Hence, the bands will widen if the most recent data is more volatile. If the prices break out of the band, this is considered a significant move.<\/p>\n<p>Bond<br \/>\nAn instrument in which the issuer (debtor\/borrower) promises to repay to the lender\/investor the amount borrowed plus interest over some specified period of time.<\/p>\n<p>Bond-equivalent basis<br \/>\nThe method uses for computing the bond-equivalent yield.<\/p>\n<p>Bond-equivalent yield<br \/>\nThe annualized yield to maturity computed by doubling the semiannual yield.<\/p>\n<p>Bond indenture<br \/>\nThe contract that sets forth the promises of a corporate bond issuer and the rights of investors.<\/p>\n<p>Bond ratio<br \/>\nThe percentage of a company\u2019scapitalization represented by bonds. The ratio is calculated by dividing the total bonds due after one year by that same figure plus all other equity.<\/p>\n<p>Bond indexing<br \/>\nDesigning a portfolio so that its performance will match the performance of some bond index.<\/p>\n<p>Book value<br \/>\nThe total owners\u2019 equity shown in the balance sheet.<\/p>\n<p>Book value per share<br \/>\nThe ratio of stockholder\u2019s equity to the average number of common shares. Book value per share should not be thought of as an indicator of economic worth, since it reflects accounting valuation (and not necessarily market valuation).<\/p>\n<p>Bootstrapping<br \/>\nA process of creating a theoretical spot rate curve, using one yield projection as the basis for the yield of the next maturity.<\/p>\n<p>Bottom-up equity management style<br \/>\nA management style that de-emphasizes the significance of economic and market cycles and focuses instead on the analysis of individual stocks.<\/p>\n<p>Box Spread<br \/>\nA type of option arbitrage in which both a bull spread and a bear spread are established for a near-riskless position. One spread is established using put options and the other is established using calls. The spread may both be debit spreads (call bull spread vs. put bear spread) or both credit spreads ( call bear spread vs. put bull spread). Break-Even Point\u2014the stock price (or prices) at which a particular strategy neither makes nor loses money. It generally pertains to the result at the expiration date of the options involved in the strategy. A \u201cdynamic\u201d break-even point is one that changes as time passes.<\/p>\n<p>Break<br \/>\nA rapid and sharp price decline.<\/p>\n<p>Break-even analysis<br \/>\nAn analysis of the level of sales at which a project would make zero profit.<\/p>\n<p>Bretton Woods Agreement<br \/>\nAn agreement signed by the original United Nations members in 1944 that established the International Monetary Fund (IMF) and the post-World War II international monetary system of fixed exchange rates.<\/p>\n<p>Broker<br \/>\nAn individual who is paid a commission for executing customer orders. Either a Floor Broker who executes orders on the floor of the Exchange, or an Upstairs Broker who handles retail customers and their orders.<\/p>\n<p>Bullish<br \/>\nDescribing an opinion or outlook in which one expects a rise in price, either by the general market or by an individual security.<\/p>\n<p>Bulldog market<br \/>\nThe foreign market in the United Kingdom.<\/p>\n<p>Bullet contract<br \/>\nA guaranteed investment contract purchased with a single (one-shot) premium.<\/p>\n<p>Bull market<br \/>\nAny market in which prices are in an upward trend.<\/p>\n<p><a title=\"Bull Spread\" href=\"http:\/\/192.168.0.202\/en\/bull-spread\/\">Bull Spread<\/a><\/p>\n<p>Butterfly shift<br \/>\nA non-parallel shift in the yield curve involving the humpedness of the curve.<\/p>\n<p>Butterfly Spread<br \/>\nAn option strategy that has both limited risk and limited profit potential, constructed by combining a bull spread and a bear spread. Three striking prices are involved, with the lower two being utilized in one spread and the higher two in the opposite spread. The strategy can be established with either puts or calls; there are four different ways of combining options to construct the same basic position.<\/p>\n<p>Buy-and-hold strategy<br \/>\nA passive investment strategy with no active buying and selling of stocks once the portfolio is created until the end of the investment horizon.<\/p>\n<p>Buy in<br \/>\nTo cover, offset or close out a short position.<\/p>\n<p>Buy limit order<br \/>\nA conditional trading order that indicates that a security may be purchased only at the designated price or lower. Related: Sell limit order<\/p>\n<p>Buy on close<br \/>\nTo buy at the end of the trading session at a price within the closing range.<\/p>\n<p>Buy on margin<br \/>\nA transaction in which an investor borrows to buy additional shares using the shares themselves as collateral.<\/p>\n<p>Buy on opening<br \/>\nTo buy at the beginning of a trading session at a price within the opening range.<\/p>\n<p>Buy-side analyst<br \/>\nA financial analyst employed by a non-brokerage firm, typically one of the larger money management firms that purchase securities on their own accounts.<\/p>\n<p>Buyout<br \/>\nPurchase of a controllinginterest (or percent of shares) of a company\u2019sstock. A leveraged buy out is effected with borrowedmoney.<\/p>\n<p>Bylaws<br \/>\nRules and practices that govern management of an organization.<\/p>\n<p><a title=\"Financial Glossary\" href=\"http:\/\/192.168.0.202\/en\/financial-glossary\/\">Financial glossary<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Back-end loan fund A mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. 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