Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "B"

Displaying next 140 results of 487
Beggar-thy-neighbor
Definition: An international trade policy of competitive devaluations and increased protective barriers that one country institutes to gain at the expense of its trading partners.
Beggar-thy-neighbor Devaluation
Definition: A devaluation that is designed to cheapen a nation's currency and thereby increase its exports at the expense of other countries. Devaluation can also reduce a nation's imports. Such devaluations often lead to trade wars.
Behind
Definition: Used for listed equity securities. At the same price but entered after your order/interest, such as on the specialist's book. Antithesis of ahead of you.
Bell
Definition: Signal on a stock exchange to indicate the open and close of trading.
Below Par
Definition: Less than the nominal or face value of a security.
Benchmark
Definition: The performance of a predetermined set of securities, used for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy.
Benchmark Error
Definition: Use of an inappropriate proxy for the true market portfolio.
Benchmark Interest Rate
Definition: Also called base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturity offered on the comparable-maturity treasury security that was most recently issued (on-the-run).
Benchmark Issue
Definition: Also called on-the-run or current-coupon issue or bellwether issue. In the secondary market, the benchmark issue is the most recently auctioned Treasury issues for each maturity.
Beneath
Definition: Used for listed equity securities. 1) Behind; 2) Lower in price.
Beneficial Owner
Definition: As used for most purposes under the federal securities laws. A beneficial owner of stock is any person or entity with sole or shared power to vote or dispose of the stock. This SEC definition is intended to include a holder who enjoys the benefits of ownership although the shares may be held in another name.
Beneficial Ownership
Definition: Often used in risk arbitrage. Person who enjoys the benefits of ownership even though title is in another name. (Abused through the illegal use of a parking violation.)
Beneficiary
Definition: Term used to refer to the person who receives the benefits of a trust or the recipient of the proceeds of a life insurance policy.
Benefits Received
Definition: A concept of tax fairness that states that people should pay taxes in proportion to the benefits they receive from government goods and services.
Bequest
Definition: Property left to an heir under the terms of a will.
Best Efforts
Definition: A high standard of undertaking, but nevertheless excusable in the event of a force majeure.
Best's Rating
Definition: A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders.
Best-efforts Sale
Definition: A method of securities distribution/underwriting in which the securities firm agrees to sell as much of the offering as possible and return any unsold shares to the issuer. As opposed to a guaranteed or fixed-price sale or bought deal, in which the underwriter agrees to sell a specific number of shares (and holds any unsold shares in its own account if necessary).
Best-interests-of-creditors Test
Definition: The requirement that a claim holder voting against a plan of reorganization must receive at least as much as if the debtor were liquidated.
Beta
Definition: The measure of an asset's risk in relation to the market (for example, the S&P500) or to an alternative benchmark or factors. Roughly speaking, a security with a beta of 1.5, will have move, on average, 1.5 times the market return. [More precisely, that stock's excess return (over and above a short-term money market rate) is expected to move 1.5 times the market excess return).] According to asset pricing theory, beta represents the type of risk, systematic risk, that cannot be diversified away. When using beta, there are a number of issues that you need to be aware of: (1) betas may change through time; (2) betas may be different depending on the direction of the market (i.e. betas may be greater for down moves in the market rather than up moves); (3) the estimated beta will be biased if the security does not frequently trade; (4) the beta is not necessarily a complete measure of risk (you may need multiple betas). Also, note that the beta is a measure of comovement, not volatility. It is possible for a security to have a zero beta and higher volatility than the market.
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