Financial and Business Terms - from Bi to Bl
Tuesday, May 12, 2009
- Bid price: This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically speaking, this is the available price at which an investor can sell shares of stock.
- Bid-asked spread: The difference between the bid and asked prices.
- Bidder: A firm or person that wants to buy a firm or security.
- Big Bang: The term applied to the liberalization in 1986 of the London Stock Exchange in which trading was automated with the use of computers.
- Big Board: A nickname for the New York Stock Exchange. Also known as The Exchange. More than 2,000 common and preferred stocks are traded. Founded in 1792, the NYSE is the oldest exchange in the United States, and the largest. It is located on Wall Street in New York City.
- Bill of exchange: General term for a document demanding payment.
- Bill of lading: A contract between the exporter and a transportation company in which the latter agrees to transport the goods under specified conditions which limit its liability. It is the exporter's receipt for the goods as well as proof that goods have been or will be received.
- Binomial option: pricing model An option pricing model in which the underlying asset can take on only two possible, discrete values in the next time period for each value that it can take on in the preceding time period.
- Black market: An illegal market.
- Black-Scholes option-pricing model: A 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.
- Blanket inventory lien: A secured loan that gives the lender a lien against all the borrower's inventories.
- Block house: Brokerage firms that help to find potential buyers or sellers of large block trades.
- Block trade: A large trading order, defined on the New York Stock Exchange as an order that consists of 10,000 shares of a given stock or a total market value of $200,000 or more.
- Block voting: A group of shareholders banding together to vote their shares in a single block.
- Blocked currency: A currency that is not freely convertible to other currencies due to exchange controls.
- Blow-off top: A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen in charts and used in technical analysis of stock price and market trends.
- Blue-chip company: Large and creditworthy company.
- Blue-sky laws: State laws covering the issue and trading of securities.
Labels: Financial and Business Terms / Dictionary
posted @ 11:13 AM,
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