|
|
|
B1 &B2 Group Shares:
See A, B1 & B2 GROUP SHARES CLASSIFICATION.
Baby Bonds:
Bonds offered by mutual funds or insurance companies for the infant over a period, aimed to cover educational expenses or wedding expenses.
Back Up:
When the stock market has backed up it has shown a sudden reversal of trend- a sudden fall in a rising market, or a sudden rise in a falling market.
Back-end-Load:
A kind of redemption charge that an investor has to pay for withdrawing his money before the date of maturity. Applies to time deposits and investment trust funds to discourage investors from withdrawing prematurely.
Backwardation:
Also known as undha badla or ulta badla in Indian stock exchanges. When a bear sells in anticipation of a fall in prices in the immediate future (so that he can pick up the shares later for delivery and make a profit), but the fall doesn't happen within the accounting period , he has the option to borrow or buy the shares for delivery, or have his sales carried over to the next accounting period on payment of undha badla or backwardation charges to the buyer. He is financed by the BADLIWALLA.
Bad Debt:
A loan receivable that has proved uncollectable and is written off. In companies, this is charged against the reserves, and is tax-deductible.
Bad Delivery:
Delivery of a share certificate, together with a deed of transfer, considered defective for the following reasons: share certificate without the company seal or a mutilated seal; call money not paid and the call date expired; correction, erasure, overwriting, or alteration in the number of shares, in the certificate number or distinctive numbers of shares or in the last holder's name,. unless these are intialled under the company's rubber stamp; certificate badly torn or patched up, mutilating any details; deed of transfer not in the standard prescribed form; torn or mutilated; with particulars made illegible; transferor's name on the deed differs from that on the certificate; transferor's signature attested nut without the signatory's name and address; transfer deed signed by an ineligible person, e.g. a lunatic or a minor or a person against whom insolvency proceedings are pending. A bad delivery will not be accepted by the buying broker.In case your broker has given you a bad delivery, he is obliged to rectify the faults by getting a replacement of the certificate or the deed of transfer.
Badla:
See CONTANGO and BACKWARDATION.
Balance of Trade:
Difference in value, over a period of time, between a country's imports and exports of merchandise. When exports exceed imports, the country has a favorable balance of trade, and when imports exceed exports the balance is unfavorable .Often shortened to BoT.
Balance sheet:
Statement of the financial position of a company on a particular date, showing the nature and amount of a company's assets and liabilities on a particular date, usually the end of the accounting year. The assets include fixed assets (GROSS BLOCK less DEPRECIATION), investments, current assets (which include INVENTORIES, sundry debtors, cash and bank balances), and loans and advances. The liabilities include shareholder's fund (equity capital plus reserves), loan funds (secured and unsecured loans) and current liabilities and provisions. The assets and liabilities must balance. See APPENDIX A.
Balanced Mutual Fund:
A MUTUAL FUND which invests in equity shares, debentures, government bonds, and Unit Trust certificates so as to balance
Balloon payment:
A final payment of debt installment which is considerably larger than the previous payments.
Ballot:
A random basis of allotment of shares when a new issue has been oversubscribed.
Band Ke Bhao:
The prices offered by unauthorized dealers in stocks outside the official hours of the stock exchange.
Bank Rate :
The rate of interest at which the Central Bank of the country i.e., the Reserve Bank of India, as a lender of last resort, refinances other banks in the Country's banking system. It is also known as the minimum lending rate, or the base rate.
Bank Receipt:
See BR.
Bankruptcy :
A company becomes bankrupt when the court decides that the company is unable to pay its creditors. The court then orders the company's remaining assets to be auctioned off to pay the debts. The proceeds of the auction are paid out in this preferential order: court costs; wages due to workers; overdue taxes; secured loans; unsecured loans; preference shareholders, if any; and last, equity shareholders.
Bar Charts:
A tool of TECHNICAL ANALYSIS; these have vertical bars representing each day's highest price movement. Each bar covers the distance between the day's highest price to the day's lowest price, with an X to mark the closing price.
Barometer:
Economic and market data which represent larger trends, used in economic forecasting. The more significant data are consumer spending. Start in housing, and interest rates.
Barometer Stock:
A share, usually a blue chip, whose price is taken to show the state of the stock market. It is a widely held, frequently traded share with a stable price record. Its BETA COEFFICIENT is 1.
Base Market Value:
Average market price of a group of shares at a given time. Used for plotting changes in market indexing.
Base Period:
A particular time in the past, usually a year, chosen as a yardstick to compare economic and financial data, such as the cost of living index or the consumer price index, and the stock market indices. See MARKET INDICES.
Base Rate:
See PRIME RATE.
Basis Point:
01% of yield of a fixed interest bond. Thus with the fluctuation of price of a bond, if the yield increases from 14.27% to 15.31%, there has been increase of 104 basis points.
Basis Price:
The price on which an investor calculates his capital gains when he sells shares or bonds.
Basket of currencies:
A group of particular currencies whose weighted average is taken to determine the value of another currency.
Bear :
A stock market operator who expects share prices to fall and keeps selling (to pick up the shares later a lower price for actual delivery), causing selling pressure and lowering the prices further. Term derived from the attacking posture of the bear, pushing downwards. See BULL.
Bear Cycle:
An extended period, usually shorter than a BULL CYCLE, when share prices generally keep falling and the stock market INDICES keep going down. See BEAR.
Bear Hammering :
Persistent selling pressure by bears, bringing the price down. A bit of a mixed metaphor.
Bearer Bond:
A bond which does not have the owner's name on it and is like a promissory note redeemed at maturity to anyone who presents it. Sometimes interest coupons are attached to the bond, which are enchased at fixed intervals. Otherwise,, the bond is redeemed at its maturity value.
 |
|
|
|
|
|
|
