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Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "B"

Displaying next 200 results of 487
Black Monday
Definition: Refers to October 19, 1987, when the Dow Jones Industrial Average fell 508 points on the heels of sharp drops the previous week. On Monday, October 27, 1997, the Dow dropped 554 points. While the point drop set a new record, the percentage decline was substantially less than in 1987.
Black-Scholes Equation
Definition:

An analytical option pricing formula which is used to price European options on non-dividend paying equity.

The Black-Scholes (BS) method can be extended to price American options. The Snowgold Option Calculator uses the Barone-Adesi and Whaley (BAW) method which prices an American option by valuing the corresponding European option using the BS method and then adds on an early exercise premium if the underlying price exceeds a critical stock price calculated by the model.

Black-Scholes Option-pricing Model
Definition: A model for pricing call options based on arbitrage arguments. Uses the stock price, the exercise price, the risk-free interest rate, the time to expiration, and the expected standard deviation of the stock return. Developed by Fischer Black and Myron Scholes in 1973.
Blackboard Trading
Definition: The practice, no longer used, of buying and selling commodities by posting prices on a blackboard on a wall of a commodity exchange. Black-Scholes Model: An option pricing model initially developed by Fischer Black and Myron Scholes for securities options and later refined by Black for options on futures.
Blank Check
Definition: A check that is duly signed, but the amount of the check is left blank to be supplied by the drawee.
Blank Check Offering
Definition: An initial public offering by a company whose business activities are undefined and therefore peculative.
Blank Check Preferred Stock
Definition: This is stock over which the board of directors has broad authority to determine voting, dividend, conversion, and other rights. While it can be used to enable a company to meet changing financial needs, its most important use is to implement poison pills or to prevent takeovers by placement of this stock with friendly investors.
Blanket Fidelity Bond
Definition: SEC-required insurance coverage that brokerage firms are required to have in order to cover fraudulent trading by employees.
Blanket Inventory Lien
Definition: A secured loan that gives the lender a lien against all the borrower's inventories.
Blanket Mortgage
Definition: A mortgage that covers at least two pieces of real estate as collateral for the same mortgage.
Blanket Recommendation
Definition: A recommendation by a brokerage firm sent to all its customers advising that they buy or sell a particular stock regardless of investment objectives or portfolio size.
Blind Pool
Definition: A limited partnership that does not announce its intentions as to what properties will be acquired.
Blind Trust
Definition: A trust in which a fiduciary third party has total discretion to make investments on behalf of a beneficiary while the beneficiary is uninformed about the holdings of the trust.
Blitzkrieg Tender Offer
Definition: In the context of a takeover, refers to a tender offer that is priced so attractively that the tender is completed quickly.
Block
Definition: Large quantity of stock or large dollar amount of bonds held or traded. As a rule of thumb, 10,000 shares or more of stock and $200,000 or more worth of bonds would be described as a block.
Block Call
Definition: In the context of general equities, conference meeting during which customer indications and orders, along with the traders' own buy/sell preferences, are conveyed to the entire organization. See block list.
Block House
Definition: Brokerage firms that help to find potential buyers or sellers of large block trades.
Block List
Definition: In the context of general equities, listing of stock the investment bank is looking for (wants to buy) or (wants to sell) at the beginning of the day, whether on an agency or principal basis.
Block Trade
Definition: 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 at a total market value of $200,000 or more.
Block Trader
Definition: A dealer who will take a position in the block trades to accommodate customer buyers and sellers of blocks. See: Dealer, market maker, principal.
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