Terms Beginning With 'B'
Baby Bond
A bond with a par value below $1,000, often issued to attract retail investors.
Baby Boomer
Individuals born between 1946 and 1964, impacting economic trends like retirement planning.
Back-End Ratio
Debt-to-income ratio including housing and other debts, used in mortgage approvals (typically ≤ 36%).
Back Office
Administrative and support functions (e.g., record-keeping, compliance) in a financial firm.
Back Stop
A financial guarantee or reserve ensuring obligations are met, often in underwriting or loans.
Back-to-Back Letters of Credit
Two letters of credit used in trade, one backing another to facilitate transactions between parties.
Backdoor Roth IRA
Converting a traditional IRA to a Roth IRA to bypass income limits for high earners.
Backflush Costing
An accounting method assigning costs to products after production, simplifying cost tracking.
Backlog
Accumulated unfulfilled orders or work, indicating demand or operational delays.
Backorder
An order for out-of-stock goods, to be fulfilled when inventory is replenished.
Backtesting
Testing a trading or investment strategy using historical data to evaluate performance.
Backup Withholding
IRS-mandated tax withholding on payments (e.g., interest) when taxpayer ID is missing.
Backward Integration
Acquiring suppliers to control inputs, reducing costs or securing supply chains.
Backwardation
When futures prices are lower than the spot price, often due to short-term supply shortages.
Bad Credit
A low credit score (e.g., below 580), limiting loan access or increasing borrowing costs.
Bad Debt
Uncollectible receivables written off as a loss, reducing income and assets.
Bad Debt Expense
Estimated uncollectible receivables recorded as an expense in accrual accounting.
Bag Holder
An investor holding a losing asset, often hoping for a recovery despite poor prospects.
Bail Bond
A payment to secure a defendant’s release from jail, forfeited if they fail to appear in court.
Bail-In
Resolving a failing bank by converting debt to equity, shifting losses to creditors/shareholders.
Bailout
Financial aid to prevent a company or economy from collapsing, often from government or institutions.
Bait and Switch
A deceptive tactic offering a low-priced item to lure customers, then pushing a costlier alternative.
Balance of Payments (BOP)
A record of a country’s transactions with the world, including trade, capital, and transfers.
Balance of Trade (BOT)
The difference between a country’s exports and imports, impacting economic health.
Balance Sheet
A financial statement showing assets, liabilities, and equity at a specific point in time.
Balanced Budget
A budget where revenues equal expenditures, avoiding deficits or surpluses.
Balanced Fund
A mutual fund investing in a mix of stocks and bonds for diversification and moderate risk.
Balanced Investment Strategy
Allocating assets across classes (e.g., stocks, bonds) to balance risk and return.
Balanced Scorecard
A management tool tracking financial and non-financial performance metrics for strategy alignment.
Balloon Loan
A loan with low initial payments and a large final payment (balloon) at maturity.
Balloon Payment
A lump-sum payment due at the end of a loan term, often in balloon loans.
Ballpark Figure
A rough estimate of costs, revenues, or values, used for planning or discussion.
Baltic Dry Index
A measure of global shipping rates for dry bulk commodities, indicating trade activity.
Bancassurance
Banks selling insurance products, leveraging their customer base for cross-selling.
Bandwagon Effect
Investors following popular trends or market momentum, often amplifying bubbles.
Bank
A financial institution accepting deposits, making loans, and providing payment services.
Bank Bill Swap Rate (BBSW)
Australia’s benchmark interest rate for short-term bank bills, used in lending and derivatives.
Bank Capital
Funds (e.g., equity, reserves) a bank holds to absorb losses and meet regulatory requirements.
Bank Confirmation Letter (BCL)
A letter verifying a client’s funds or credit, often used in trade or transactions.
Bank Credit
Loans or credit lines extended by banks to individuals or businesses.
Bank Deposits
Funds placed in bank accounts, like savings or checking, earning interest or enabling transactions.
Bank Identification Number
The first 4-6 digits of a payment card, identifying the issuing bank.
Bank Rating
An assessment of a bank’s financial stability and creditworthiness by rating agencies.
Funds banks hold to meet regulatory requirements or cover withdrawals, often at central banks.
Bank Statement
A periodic summary of account transactions, balances, and fees issued by a bank.
Bank Stress Test
A simulation assessing a bank’s ability to withstand economic shocks, ensuring stability.
Bank Draft
A secure payment instrument issued by a bank, guaranteeing funds for the recipient.
Bank-Owned Life Insurance (BOLI)
Life insurance purchased by banks on employees, with banks as beneficiaries to offset costs.
Banker's Acceptance
A short-term credit instrument issued by a bank, used in trade to guarantee payment.
Bank Guarantee
A bank’s commitment to cover a client’s debt or obligation if they default.
Bank Reconciliation
Matching a company’s financial records with bank statements to ensure accuracy.
Bank Run
A mass withdrawal of deposits due to fears of a bank’s insolvency, risking collapse.
Bankruptcy
A legal process where a debtor unable to pay debts seeks relief, often restructuring or liquidating assets.
Banner Advertising
Online ads displayed on websites, often used for financial product promotion.
Baptism by Fire
A challenging introduction to a role or market, like navigating a financial crisis.
Barbell
An investment strategy allocating funds to short- and long-term bonds, avoiding intermediates.
Bar Chart
A visual representation of price data (e.g., stocks) showing open, high, low, and close.
Bare Trust
A simple trust where the beneficiary has immediate rights to assets and income.
Barrel Of Oil Equivalent (BOE)
A unit measuring energy content of fuels relative to one barrel of oil.
Barrels Of Oil Equivalent Per Day (BOE/D)
Daily energy production expressed as equivalent barrels of oil, used in energy sectors.
Barrier Option
An option whose payoff depends on the underlying asset hitting a specific price barrier.
Barriers to Entry
Obstacles (e.g., high costs, regulations) preventing new firms from entering a market.
Barter
Exchanging goods or services without money, less common in modern finance.
Base Effect
The impact of a prior period’s low or high value distorting growth rate comparisons.
Base Pay
Fixed salary or wages, excluding bonuses or benefits, used in employment contracts.
Base Year
A reference year for economic or financial comparisons, like inflation or GDP analysis.
Basel I
A 1988 banking accord setting minimum capital requirements to ensure financial stability.
Basel II
A 2004 banking framework enhancing risk management, capital adequacy, and transparency.
Basel Accords
International banking regulations (Basel I, II, III) to strengthen financial system stability.
Basel III
A 2010 accord increasing bank capital requirements and liquidity to prevent crises.
Baseline
A reference point for comparing financial or operational performance over time.
Basic Earnings Per Share (EPS)
Net income divided by outstanding shares, measuring per-share profitability.
Basic Materials
Commodities or resources (e.g., metals, chemicals) used in manufacturing, traded as sectors.
Basis
The difference between an asset’s spot price and its futures or derivative price.
Basis Point (BPS)
One-hundredth of a percent (0.01%), used to measure interest rates or fees.
Basis Risk
The risk that a hedge’s value doesn’t move perfectly with the underlying asset.
Basket of Goods
A set of goods and services used to calculate inflation or cost-of-living indices.
Basket Trade
Trading multiple securities as a single order, often for portfolio rebalancing.
BAT Stocks
Chinese tech giants (Baidu, Alibaba, Tencent), analogous to U.S. FAANG stocks.
Batch Processing
Processing financial transactions (e.g., payments) in groups, improving efficiency.
Baye's Theorem
A statistical formula updating probabilities based on new evidence, used in risk analysis.
BCG Growth-Share Matrix
A tool classifying business units by growth and market share to guide investment.
Beacon Score
A credit score variant used by Equifax, assessing creditworthiness for lenders.
Bear Call Spread
A bearish options strategy selling a call at a lower strike and buying a higher strike.
Bear Hug
An aggressive takeover offer at a premium to pressure the target’s board to accept.
Bear Market
A market decline of 20% or more, signaling pessimism and falling prices.
Bear Put Spread
A bearish options strategy buying a put at a higher strike and selling a lower strike.
Bear Spread
An options strategy profiting from a declining underlying asset price.
Bear Stearns
A defunct investment bank, collapsed in 2008, acquired by JPMorgan during the financial crisis.
Bear Trap
A false signal of a market decline, trapping bearish traders before prices rise.
Bearer Bond
A bond with no registered owner, payable to whoever holds it, rare today.
Bearer Share
A stock certificate with no registered owner, transferable by possession, largely phased out.
Bearish Engulfing Pattern
A candlestick pattern signaling a potential price decline, where a large red candle follows a small green one.
Behavioral Economics
Studying how psychological factors influence financial and economic decisions.
Behavioral Finance
Analyzing how cognitive biases (e.g., overconfidence) affect investor behavior and markets.
Bell Curve
A normal distribution graph, used in finance to model returns or risk probabilities.
Below-the-Line Advertising
Targeted marketing (e.g., emails, promotions) vs. mass media, often cost-effective.
Ben Bernanke
Former Federal Reserve Chairman (2006-2014), led monetary policy during the 2008 crisis.
Benchmark
A standard (e.g., S&P 500) used to measure investment or portfolio performance.
Beneficial Owner
The true owner of an asset or security, entitled to its benefits, despite nominal ownership.
Beneficiary
A person or entity receiving benefits, like inheritance or insurance payouts.
Benefit-Cost Ratio
A ratio comparing a project’s benefits to costs, used to assess viability.
Benjamin Graham
The “father of value investing,” authored Security Analysis and mentored Warren Buffett.
Berhad (BHD)
A Malaysian term for a public limited company, similar to “Inc.” or “PLC.”
Berkshire Hathaway
Warren Buffett’s conglomerate, holding diverse investments like insurance and consumer goods.
Bermuda Option
An exotic option exercisable on specific dates before expiration, blending American and European features.
Bernie Madoff
Infamous for running a $65 billion Ponzi scheme, exposed in 2008, defrauding investors.
Bespoke CDO
A custom collateralized debt obligation tailored for specific investor risk preferences.
Best Alternative to a Negotiated Agreement (BATNA)
The fallback option if negotiations fail, guiding deal-making strategies.
Best Endeavors
A contractual effort to achieve a goal without guaranteeing success, weaker than “best efforts.”
Best Practices
Industry-standard methods for optimal financial or operational performance.
Beta
A measure of a stock’s volatility relative to the market, indicating systematic risk.
Better Business Bureau (BBB)
A nonprofit rating businesses on customer service and ethics, aiding consumer trust.
Bicameral System
A legislative system with two chambers (e.g., U.S. Congress), impacting financial policy.
Bid
The highest price a buyer is willing to pay for a security or asset.
Bid and Ask
The bid (buy) and ask (sell) prices quoted for a security, defining the spread.
Bid-Ask Spread
The difference between the highest bid and lowest ask price, reflecting liquidity and costs.
Bid Bond
A guarantee ensuring a bidder will honor a contract if awarded, common in construction.
Bid Price
The price a buyer offers to purchase a security or asset in a market.
Bid Size
The number of shares or units a buyer is willing to purchase at the bid price.
Big Data
Large datasets analyzed for financial insights, like market trends or customer behavior.
Bilateral Contract
An agreement where both parties make mutual promises, common in financial deals.
Bilateral Trade
Trade between two countries, often governed by agreements to reduce tariffs.
Bill Auction
A process where Treasury bills are sold to investors via competitive bidding.
Bills of Materials (BOM)
A list of components and quantities needed to produce a product, used in costing.
Billing Cycle
The period between billing statements, typically monthly, for credit or utility accounts.
Bill of Exchange
A written order to pay a specified amount to a party, used in trade financing.
Bill of Lading
A document detailing shipped goods, serving as a contract and receipt in trade.
Binance Coin (BNB)
A cryptocurrency used on the Binance exchange for trading fees and services.
Binary Option
An option with a fixed payout or nothing, based on whether a condition is met.
Binomial Distribution
A probability model for binary outcomes, used in options pricing or risk analysis.
Binomial Option Pricing
A model valuing options by simulating price paths in a binomial tree.
Bioremediation
Using organisms to clean environmental damage, relevant to energy or ESG investing.
Bird In Hand
A theory favoring dividends over capital gains due to their certainty.
Bitcoin
A decentralized cryptocurrency using blockchain, enabling peer-to-peer transactions without intermediaries.
Bitcoin Cash
A Bitcoin fork with larger block sizes, aiming for faster, cheaper transactions.
Bitcoin Mining
The process of validating Bitcoin transactions and earning rewards via computational power.
Bitcoin Misery Index
A metric gauging Bitcoin investor sentiment, combining volatility, volume, and price trends.
Bitcoin Wallet
A software or device storing private keys for accessing and managing Bitcoin.
Black Money
Funds earned illegally or unreported, often evading taxes or regulations.
Black Box Model
A system (e.g., algorithmic trading) where inputs/outputs are known but processes are opaque.
Black Friday
The day after U.S. Thanksgiving, known for major retail sales and market activity.
Black Market
Illegal trading of goods or services, bypassing regulations or taxes.
Black Monday
October 19, 1987, when global stock markets crashed, with the Dow dropping 22.6%.
Black Scholes Model
A formula pricing options based on factors like volatility, time, and strike price.
Black Swan
A rare, unpredictable event with severe financial or economic consequences.
Black Tuesday
October 29, 1929, a major stock market crash triggering the Great Depression.
Blended Rate
A weighted average interest rate combining multiple loans or investments.
Blind Trust
A trust where the beneficiary has no control or knowledge of assets, avoiding conflicts.
Block Trade
A large securities transaction, typically 10,000+ shares, executed off-exchange to minimize impact.
Blockchain
A decentralized ledger recording transactions across a network, used in cryptocurrencies.
Blockchain-as-a-Service (BaaS)
Cloud-based platforms offering blockchain infrastructure for businesses to build applications.
Blockchain Wallet
A digital tool storing private keys for managing cryptocurrency transactions.
Bloomberg
A financial data and media company providing market news and analytics.
Bloomberg Terminal
A software platform delivering real-time financial data, news, and trading tools.
Blotter
A record of a trader’s transactions, used for tracking and compliance.
Blue Book
A guide (e.g., Kelley Blue Book) valuing assets like vehicles, used in financing.
Blue Chip
A large, stable, financially sound company with a history of reliable performance.
Blue-Chip Stock
Shares of blue-chip companies, known for low volatility and consistent dividends.
Blue Ocean
A strategy targeting untapped markets with little competition, fostering innovation.
Blue Sky Laws
State securities regulations protecting investors from fraud, complementing federal rules.
Board of Directors (B of D)
A group overseeing a company’s strategy, governance, and financial performance.
Board of Governors
The Federal Reserve’s governing body, setting U.S. monetary policy.
Board of Trustees
A group managing assets or operations for trusts, nonprofits, or institutions.
Boil the Ocean
Attempting an overly ambitious or impractical financial or business task.
Boilerplate
Standardized contract language, used in financial agreements for consistency.
Boiler Room
A high-pressure sales operation, often promoting fraudulent or risky investments.
Bollinger Band
A technical indicator using moving averages and standard deviations to signal price volatility.
Bombay Stock Exchange (BSE)
India’s oldest stock exchange, listing thousands of companies and the Sensex index.
Bond
A debt security where the issuer borrows funds and pays interest to bondholders.
Bond Covenant
Terms in a bond agreement restricting or requiring issuer actions to protect bondholders.
Bond Discount
The amount a bond’s market price is below its par value, often due to higher market rates.
Bond Equivalent Yield (BEY)
A standardized yield for comparing bonds with different maturities or payment schedules.
Bond ETF
An exchange-traded fund investing in bonds, offering diversification and liquidity.
Bond Fund
A mutual fund investing primarily in bonds, balancing income and risk.
Bond Futures
Contracts to buy or sell bonds at a set price on a future date.
Bond Ladder
A portfolio of bonds with staggered maturities to manage interest rate risk and cash flow.
Bond Market
The marketplace for trading debt securities, including government and corporate bonds.
Bond Quote
The price at which a bond is offered or bid, often as a percentage of par.
Bond Rating
An assessment of a bond’s credit quality by agencies like S&P or Moody’s.
Bond Rating Agencies
Firms (e.g., Moody’s, S&P) evaluating the creditworthiness of bond issuers.
Bond Valuation
Calculating a bond’s worth based on cash flows, interest rates, and time to maturity.
Bond Yield
The return on a bond, often expressed as a percentage of its price or par value.
Bondholder
An investor owning a bond, entitled to interest payments and principal repayment.
Bonus
Additional compensation beyond base pay, often tied to performance or company profits.
Bonus Depreciation
A tax incentive allowing accelerated depreciation for qualifying business assets.
Bonus Issue
Free additional shares issued to existing shareholders, increasing total shares outstanding.
Book Building
A process to gauge demand and set prices for securities during an IPO.
Book Runners
Investment banks managing the issuance and distribution of securities in offerings.
Book-to-Bill
A ratio of orders received to orders shipped, indicating business demand (e.g., >1 signals growth).
Book-to-Market Ratio
A valuation metric dividing book value by market value, used in value investing.
Book Value
A company’s net asset value (assets minus liabilities), often compared to market value.
Book Value of Equity Per Share (BVPS)
Book value divided by outstanding shares, indicating per-share net worth.
Book Value Per Common Share
Equity available to common shareholders divided by shares outstanding.
Bookie
A person or entity accepting bets, often in gambling or informal markets.
Boom And Bust Cycle
Economic fluctuations between rapid growth (boom) and contraction (bust).
Bootstrap
Starting or growing a business using minimal external funding, relying on internal cash flow.
Borrowing Base
Assets (e.g., receivables, inventory) used as collateral to determine loan eligibility.
Both-to-Blame Collision Clause
A maritime contract clause splitting liability between colliding vessels, impacting insurance.
Bottleneck
A process or resource constraint slowing financial or operational performance.
Bottom Line
Net income or profit after all expenses, reflecting a company’s financial health.
Bottom-Up Investing
Selecting investments based on individual company analysis, not macroeconomic trends.
Bounced Check
A check returned unpaid due to insufficient funds, incurring fees for the issuer.
Boundary Conditions
Constraints or limits in financial models or contracts, defining operational parameters.
Box Spread
An options strategy combining bull and bear spreads for a risk-free arbitrage profit.
Brain Drain
The loss of skilled professionals to other regions, impacting economic productivity.
Branch Accounting
Tracking financials for individual branches of a company separately from headquarters.
Branch Banking
Operating multiple bank locations to serve customers, expanding reach and deposits.
Branch Manager
An individual overseeing a bank or business branch’s operations and performance.
Brand
A company’s identity, including name, logo, and reputation, influencing customer perception.
Brand Awareness
The extent to which consumers recognize or recall a brand, impacting sales.
Brand Equity
The value of a brand based on customer loyalty, recognition, and perception.
Brand Extension
Using an established brand name to launch new products or enter new markets.
Brand Identity
The visual and messaging elements (e.g., logo, slogan) defining a brand.
Brand Loyalty
Customers’ consistent preference for a brand, driving repeat purchases and revenue.
Brand Management
Strategies to maintain or enhance a brand’s value, reputation, and market position.
Brand Personality
Human-like traits (e.g., innovative, trustworthy) assigned to a brand for marketing.
Brand Recognition
The ability of consumers to identify a brand by its logo, name, or attributes.
Brazil, Russia, India, and China (BRIC)
Emerging economies with significant growth potential, shaping global investment trends.
Brazil, Russia, India, China, and South Africa (BRICS)
BRIC plus South Africa, a group of emerging markets influencing global economics.
Breadth Indicator
A metric (e.g., advance/decline ratio) gauging market participation and strength.
Break-Even Price
The price at which revenue equals costs, resulting in no profit or loss.
Break-Even Analysis
Calculating the point where revenue covers costs, used for pricing or investment decisions.
Breakeven Point
The sales volume or revenue needed to cover all costs, avoiding losses.
Breakout
A price movement beyond a defined support or resistance level, signaling a trend.
Bretton Woods Agreement
A 1944 system pegging currencies to the USD and gold, shaping post-WWII finance.
Brexit
The UK’s 2016 decision to exit the EU, impacting trade, currency, and markets.
Brick and Mortar
Physical retail or business locations, contrasted with online operations.
Bridge Financing
Short-term funding to bridge a gap until permanent financing is secured.
Bridge Loan
A temporary loan to cover immediate needs, often repaid with long-term financing.
Broad Money
A measure of money supply including cash, deposits, and less liquid assets (e.g., M2).
Broker
An intermediary facilitating financial transactions, like stock or real estate deals.
Broker-Dealer
A firm acting as both a broker (executing trades) and dealer (trading for its account).
Brokerage Account
An account for buying/selling securities, managed through a brokerage firm.
Brokerage Company
A firm providing trading and investment services, often charging fees or commissions.
Brokerage Fee
Charges for executing trades or managing investments through a brokerage.
Brown Bag Meeting
An informal work meeting, often over lunch, discussing business or finance topics.
Brownfield Investment
Investing in existing facilities or projects, often with environmental or regulatory challenges.
Bubble
A market condition where asset prices inflate beyond fundamentals, often followed by a crash.
Budget
A financial plan outlining expected revenues, expenses, and savings for a period.
Budget Deficit
When expenses exceed revenues, often requiring borrowing or reserve use.
Budget Surplus
When revenues exceed expenses, allowing savings or debt repayment.
Budget Variance
The difference between budgeted and actual financial outcomes, used for performance analysis.
Build America Bonds (BABs)
Taxable municipal bonds with federal subsidies, issued in 2009-2010 to fund infrastructure.
Build-Operate-Transfer Contract
A public-private agreement where a firm builds, operates, and transfers a project to the government.
Bull
An investor optimistic about rising market prices, expecting gains.
Bull Call Spread
A bullish options strategy buying a call at a lower strike and selling a higher strike.
Bull Market
A market rising 20% or more, reflecting optimism and increasing prices.
Bull Put Spread
A bullish options strategy selling a put at a higher strike and buying a lower strike.
Bull Spread
An options strategy profiting from moderate price increases in the underlying asset.
Bull Trap
A false signal of a market rise, trapping bullish traders before prices fall.
Bullet Bond
A non-callable bond with principal repaid at maturity, not amortized over time.
Bullet Repayment
A single lump-sum repayment of a loan’s principal at maturity.
Bullish Abandoned Baby
A rare candlestick pattern signaling a potential price reversal upward.
Bullish Engulfing Pattern
A candlestick pattern where a large green candle follows a small red one, signaling a price rise.
Bullish Harami
A candlestick pattern indicating a potential bullish reversal after a downtrend.
Bundle of Rights
Legal rights (e.g., sell, lease) associated with property ownership, impacting valuation.
Bungalow
A single-story house with specific architectural traits, relevant in real estate financing.
Bureau of Labor Statistics (BLS)
A U.S. agency providing economic data like unemployment and inflation, guiding financial policy.
Bureaucracy
Administrative systems, often in government or corporations, impacting financial efficiency.
Burn Rate
The rate a company spends cash, critical for startups monitoring runway to profitability.
Business
An organization engaged in commercial, industrial, or professional activities for profit.
Business Activities
Operations like production, sales, or financing driving a company’s revenue and growth.
Business Asset
Property or resources (e.g., equipment, IP) owned by a company for operations.
Business Banking
Banking services (e.g., loans, accounts) tailored for companies’ financial needs.
Business Continuity Planning (BCP)
Strategies to ensure operations continue during disruptions, protecting financial stability.
Business Cycle
Economic fluctuations between growth (expansion) and contraction (recession) over time.
Business Development Companies (BDCs)
Firms investing in small/mid-sized businesses, offering high yields to investors.
Business Economics
Applying economic principles to analyze business decisions, like pricing or investment.
Business Ecosystems
Networks of interconnected firms, suppliers, and customers shaping economic activity.
Business Ethics
Moral principles guiding fair and responsible business practices, impacting reputation.
Business Exit Strategy
A plan to sell, transfer, or close a business, maximizing value or minimizing losses.
Business Expenses
Costs incurred in operations, often tax-deductible, like rent or salaries.
Business Insurance
Coverage protecting businesses from losses like property damage or liability claims.
Business Intelligence (BI)
Tools and processes analyzing data to improve business decisions and performance.
Business Models
Frameworks for how a company generates revenue and profit, like subscription or retail.
Business Plan
A document outlining a company’s goals, strategies, and financial projections.
Business Process Outsourcing
Contracting third parties to handle non-core functions, like payroll or IT, to cut costs.
Business Risk
The potential for losses due to operational, market, or external factors.
Business-to-Business (B2B)
Transactions between companies, like suppliers selling to manufacturers.
Business to Consumer (B2C)
Transactions between businesses and individual consumers, like retail sales.
Business to Government (B2G)
Transactions between businesses and government entities, often via contracts.
Business Valuations
Estimating a company’s worth using methods like DCF, comparables, or asset-based approaches.
Butterfly Spread
An options strategy combining multiple strikes to profit from minimal price movement.
Buy and Hold
A long-term investment strategy holding assets regardless of market fluctuations.
Buy and Sell Agreement
A contract outlining how a business’s shares are transferred, often in partnerships.
Buy-In
An investor or firm purchasing a stake in a company, often to influence operations.
Buy-In Management Buyout (BIMBO)
A buyout where external and existing management jointly acquire a company.
Buy Limit Order
An order to buy a security at or below a specified price, ensuring cost control.
Buy-Side
Institutional investors (e.g., mutual funds) buying securities for portfolios.
Buy Stop Order
An order to buy a security once it reaches a specified price, used to limit losses.
Buy the Dips
Purchasing assets during price declines, expecting future recovery.
Buy to Cover
Repurchasing securities to close a short position, locking in profits or losses.
Buy to Open
Initiating a new options position by buying a call or put contract.
Buyback
A company repurchasing its shares, reducing supply and potentially boosting value.
Buyer's Market
A market with excess supply, giving buyers leverage to negotiate lower prices.
Buying on Margin
Borrowing funds from a broker to buy securities, amplifying gains or losses.
Buying Power
The amount an investor can spend, including cash and margin borrowing capacity.
Buyout
Acquiring a controlling stake in a company, often to take it private or merge.