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1MTX Glossary: TRADES...
TRADES Glossary
Trade (Financial Instrument)
Trade (Commerce)
Trade (International Trade)
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Balance of Trade The balance of trade (or net exports, sometimes symbolized as NX) is the difference between the monetary value of exports and imports in an economy over a certain period of time. A positive balance of trade is known as a trade surplus and consists of exporting more than is imported; a negative balance of trade is known as a trade deficit or, informally, a trade gap. The balance of trade is sometimes divided into a goods and a services balance. »...more (Definition, Economic Impact, ...)
Balance Sheet A company's financial statement. It reports the company's assets, liabilities, and net worth at a specific time. »...Balance sheet structure
Bank A commercial institution licensed as a receiver of deposits. Banks are mainly concerned with making and receiving payments as well as supplying short-term loans to individuals.
Bank for
International
Settlements
(BIS) An international organization fostering the cooperation of central banks and international financial institutions. »...more »...website BIS
Bank Guarantee A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.
Bankruptcy The state of a person or firm unable to repay debts. »...more (SEC)
Barefoot Pilgrim Slang for an unsophisticated investor who loses all of his or her wealth from trading equities in the stock market.
Barometer An instrument used to forecast trends. For example, a barometer stock is a stock that has a price trend indicative of the market.
Barometer Stock A security whose price pattern is regarded as an indicator of the state of the overall market.
Barter Barter is a type of trade that doesn't use any medium of exchange, in which goods or services are exchanged for other goods and/or services. It can be bilateral or multilateral as trade. Barter and money are different means of balancing an economic exchange. Barter is used in societies where no monetary system exists.
»...more (Transaction Issues, History, In Finance...)
» more » 1MTX TRADES | Swapping | Barter
Baseline A benchmark used as a basis for comparison.
Basis Point Basis point A measure used world-wide to quote changes in bond interest rates and yields. One basis point relates to 0.01 percentage points. Thus, if the interest rate or yield of a bond rises by 0.75 percentage points, this corresponds to an increase by 75 basis points.
Basket Trade The buying or selling of a set of 15 or more securities in a single order.
Batch Trading A method of transacting different security orders that involves the accumulation of orders and their simultaneous execution.
Bay Street 1.The street in Toronto where the Toronto Stock Exchange (TSE) is located.
2. The collective name for the financial institutions in Toronto including stock exchanges, banks, commodity markets, money markets, etc.
Bear Market A market condition in which the prices of securities are falling or are expected to fall. Although figures can vary, a downturn of 15%-20% or more in multiple indexes (Dow or S&P 500) is considered an entry into a bear market.
Bear Raid The illegal practice of attempting to push the price of a stock lower by taking large short positions and spreading unfavorable rumors about the target firm.
Bear Trap A false signal that the rising trend of a stock or index has reversed when it has not.
Beginning
Inventory
(BI) The book value of goods, inputs, or materials available for use or sale at the beginning of an inventory accounting period.
Behavioral
Economics A field of economics that studies how the actual decision-making process influences the decisions that are reached.
Beige Book A commonly used name for the Fed report entitled "Summary of Commentary on Current Economic Conditions by Federal Reserve District." It is published just before the FOMC meeting on interest rates and is used to inform the members on changes in the economy since the last meeting.
»...The Beige Book (Summary of Commentary on Current Economic Conditions by Federal Reserve District)
Bell The ring that marks the open and close of each trading day on many organized financial exchanges, most notably the NYSE. (...One of the most familiar features of the New York Stock Exchange is the loud, distinctive Trading Floor bell. "THE OPENING BELL" signals the beginning of trading each business day and "THE CLOSING BELL" signals the ending of trading each business day...')
Bellwether A leading indicator of trends.
Below the Market An order to buy or sell a security at a price lower than the current market price.
Benchmark A standard against which the performance of something can be measured.
Best Ask The lowest quoted ask price for a particular stock among those offered from competing market makers.
Best Bid The highest quoted bid for a particular stock among all those offered by competing market makers.
Best Execution The responsibility of brokers to provide the most advantageous, or best price, order execution for customers. »...more (SEC)
Bid 1.An offer made by an investor, trader, or dealer to buy a security. 2. The price at which a market maker is willing to buy a security.
Bid Price The price a buyer is willing to pay for a security.
Bid Size The number of shares a buyer is willing to purchase at the quoted bid price.
Bid Tick An indication of whether the latest bid price is higher, lower, or the same as the previous bid.
Bid-Ask
Spread The amount by which the ask price exceeds the bid.
Bid-to-Cover
Ratio A ratio that compares the number of bids received in a Treasury security auction to the number of bids accepted.
Big Bath A business strategy with which a company manipulates its income statement to make poor results look even worse.
Big Board A nickname for the New York Stock Exchange. »...NYSE
Big Four
(or Big Five,
Big Six,
Big Eight) The largest accounting firms in the United States as measured by revenue.
Big Three The three largest automobile manufacturers in North America:
1. General Motors
2. Daimler Chrysler
3. Ford Motor Co.
Big Uglies The old industrial companies in gritty industries such as mining, steel and oil.
Bill of Exchange A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date.
Bimetallism In economics, bimetallism is a monetary standard in which the value of the monetary unit can be expressed either with a certain amount of gold or with a certain amount of silver. The ratio between the two metals is fixed by law. In economic history the debate took place primarily inside the United States in the late 19th century, as the U.S. was the only major country that was a large producer of both gold and silver. »...more
BIMSTEC The Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation involving a group of countries in South Asia and South East Asia. The member nations of this group are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
The seven nation countries have endorsed a plan for a free trade pact by 2017 -- while the three most advanced countries of the area (India, Sri Lanka, and Thailand) are committed to trade liberalization by 2012. »...more
»...BIMSTEC (website)
BIT A Bilateral Investment Treaty (BIT) is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in the state of the other. This type of investment is called Foreign direct investment (FDI). BITs are established through trade pacts. Most BITs grant investments made by an investor of one Contracting State in the territory of the other a number of guarantees, which typically include fair and equitable treatment, protection from expropriation, free transfer of means and full protection and security. The distinctive feature of many BITs is that they allow for an alternative dispute resolution mechanism, whereby an investor whose rights under the BIT have been violated could have recourse to international arbitration... »...more
»...Trade Compliance Center (website)
Black Monday The most notorious day in financial history (October 19, 1987). The DJIA fell 508 points, almost 22%. »...more
Black Thursday The name given to Thursday, October 24th, 1929, (»...Wall Street Crash of 1929) when the New York Stock Exchange plummeted, leading to the Great Depression of the 1930's.
Block House A brokerage whose major concern is finding potential buyers and sellers of block trades.
Block Order An order submitted for the sale or purchase of a large quantity of securities.
Block Trade The sale or purchase of a large quantity of securities.
Blue Chip A security from a well-established and financially-sound company that has demonstrated its ability to pay dividends in both good and bad times.
Blue Chip
Stock Stock of a well-established and financially-sound company that has demonstrated its ability to pay dividends in both good and bad times.
Bo Derek A slang term used to describe a perfect stock or investment.
Board Broker A member or member nominee of a commodity exchange who is entrusted with the responsibility of executing and matching orders, providing price quotations, and maintaining orderliness of trading accounts for the designated commodity.
Board Broker
System The system used by many commodity exchanges in which members are assigned specific commodities to manage.
Board Lot The standard number of shares in trading stocks, usually 100.
Boiler Room A telemarketing firm using high pressure sales tactics. These tactics are sometimes used by stock brokers who try to sell investors the firm's house stock.
Boston Snow
Indicator A market theory stating that a white Christmas in Boston will result in rising stock prices.
Bottom Fisher An investor who looks for bargains among stocks whose prices have recently dropped dramatically.
Bottom Up
Investing An investment approach that de-emphasizes the significance of economic and market cycles. This approach focuses on the analysis of individual stocks.
Bourse Any European stock exchange.
Breadth of
Market Theory A technical analysis theory that predicts the strength of the market according to the number of stocks that advance or decline in a particular trading day.
Break A technical analysis theory that predicts the strength of the market according to the number of stocks that advance or decline in a particular trading day.
Break Fee 1. A fee paid by a target company to bidders (during an acquisition) if the pending deal is terminated.
2. A fee paid by one party of a contract to another in order to terminate or cancel legal obligations.
Bretton Woods
System The Bretton Woods system of international monetary management established the rules for commercial and financial relations among the world's major industrial states.
The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states. »...more
» more » 1MTX TRADES | World Trade | WTO
Broad Based
Index An index designed to reflect the movement of the entire market.
Buck Trader's slang for a million dollars.
Buck the Trend When a security goes against the prevailing trend of the overall market.
Bucket Shop 1. A fraudulent brokerage firm that uses aggressive telephone sales tactics to sell securities that the brokerage owns and wants to get rid of. The securities they sell are typically poor investment opportunities, almost always penny stocks.
2. A brokerage that makes trades on a client's behalf and promises a certain price. The brokerage, however, waits until a different price arises and then makes the trade, keeping the difference as profit.
Budget An estimation of an organization's revenue and expenses over a specified period of time.
BUGS Index -
HUI An acronmy for "basket of un-hedged gold stocks," the BUGS index is the AMEX's index measuring gold companies that do not hedge their gold production beyond a year and a half.
Bull An investor who thinks the market, a specific security, or an industry will rise.
Bull Market A market in which prices of a certain group of securities are rising or are expected to rise.
Bull Trap A false signal indicating that a declining trend in a stock or index has reversed and heading upwards when, in fact, the security will continue to decline.
Bull/Bear
Ratio A market sentiment indicator published weekly by Investor's Intelligence that uses information polled directly from market professionals. The ratio is derived by dividing the total number of bullish investment advisors by the number of bearish and bullish advisors.
Bullet Trade The act of purchasing an "in the money" put option so that the buyer can capitalize on a bear market by effectively shorting a stock without waiting for an uptick.
Burn Rate The rate at which a new company uses up its venture capital to finance overhead before generating positive cash flow from operations. In other words, it's a measure of negative cash flow.
Business Model The way, or ways, in which a company makes generates revenue (and profit).
Business Risk The risk that a company will not have adequate cash flow to meet its operating expenses.
Buy 1. A recommendation to purchase a specific security.
2. To acquire an asset in exchange for currency.
Buy and Hold A passive investment strategy with which an investor buys stocks and holds them for a long period regardless of fluctuations in the market.
Buy Back The buying back of shares by a corporation in order to reduce the number of shares on the market.
Buy Minus A type of order where a client instructs the broker to purchase a stock at a price below the current market price.
Buy Stop Order An order to buy a security which is entered in at a price above the current offering price. It is triggered when the market price touches or goes through the buy stop price.
Buy To Close A term used by many brokerages to represent the closing of a short position in option transactions.
Buy To Cover An order placed to close out a short position in a particular stock.
Buy To Open A term used by many brokerages to represent the opening of a long position in option transactions.
Buyer's Call When an investor is forced to repurchase shares because the seller did not deliver the securities in a timely fashion, or did not deliver them at all.
Buyer's Market The investing institutions such as mutual funds, pension funds, and insurance firms that tend to buy large portions of securities.
Buying Power A market condition characterized by an abundance of goods available for sale.
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Sources: Yahoo.com; Nasdaq.com; Boerse-Frankfurt.com; NYSE.com; SEC.gov; Wikipedia.org; thefreedictionary.com;
1MTX 2009
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