Financial and Business Terms - from Bac to Bal
Wednesday, May 6, 2009
- Back fee: The fee paid on the extension date if the buyer wishes to continue the option.
- Back office: Brokerage house clerical operations that support, but do not include, the trading of stocks and other securities. Includes all written confirmation and settlement of trades, record keeping and regulatory compliance.
- Back-end loan fund: A 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, such as one year. The commission decreases the longer the investor holds the shares. The formal name for the back-end load is the contingent deferred sales charge, or CDSC.
- Back-to-back financing: An intercompany loan channeled through a bank.
- Back-to-back loan: A loan in which two companies in separate countries borrow each other's currency for a specific time period and repay the other's currency at an agreed upon maturity.
- Back-up: (1) When bond yields and prices fall, the market is said to back-up. (2) When an investor swaps out of one security into another of shorter current maturity he is said to back up.
- Backwardation: A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This situation may occur in when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango.
- Baker Plan: A plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor countries (the Baker 15) would undertake growth-oriented structural reforms, to be supported by increased financing from the World Bank and continued lending from commercial banks.
- Balance of payments: A 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.
- Balance of trade: Net flow of goods (exports minus imports) between countries.
- Balance sheet: Also called the statement of financial condition, it is a summary of the assets, liabilities, and owners' equity.
- Balance sheet identity: Total Assets = Total Liabilities + Total Stockholders' Equity
- Balanced fund: An investment company that invests in stocks and bonds. The same as a balanced mutual fund.
- Balanced mutual fund: This is a fund that buys common stock, preferred stock and bonds. The same as a balanced fund.
- Balloon maturity: Any large principal payment due at maturity for a bond or loan with or without a a sinking fund requirement.
Labels: Financial and Business Terms / Dictionary
posted @ 4:37 PM,
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