Education Glossary

Showing Terms 61 - 80 out of 533 found.

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Term Definition
Base Rate

Is the minimum lending rate of the central bank for any given country.

Basis Point

A common unit of measure (1/100th of one percent) used to describe the percentage change in value of a financial instrument or interest rates.

Bear

An investor sentiment derived from a pessimistic belief that the financial markets (or any financial instrument within) is going to fall in value.

Bear Flag

A price chart pattern that represents asharp downtrend on high volume followed by generally sideways activity of gradually higher highs and higher lows.

Bear Market Correction

A long-term market trend where the prices of securities have declined by a significant (15-20)percentage and drives sustained pessimism among investors.

Bearish Divergence

Occuring within a bear market cycle, two technical indicators are moving in opposing directions signaling an approaching change in trend.

Bearish Engulfing Pattern

A Candlestick price chart pattern where a large black candlestick fully engulfs a small white candlestick appearing just prior.

Benchmark Index

Market indexes such as the Dow Jones Industrial Average, the S&P 500, or the Russell 2000 are used for comparison purposes by Portfolio Managers to evaluate portfolio performance.

Beta

Beta measures the volatility of a stock's return relative to the S&P 500. A higher beta value represents a higher probability of risk.

Bid

Is the price in a given market for which an asset may be sold (conversely, it is also the price at which it may be bought). The bid price is usually displayed with the amount of the asset which the buyer is prepared to buy.

Big Figure

Refers to the first 3 digits of a currency quote.

Binomial Model

An options valuation method that designates specific points in time within the time span of the valuation date to expiration. 

Black Box

A self-contained trading system comprised of model-based formulas that are not revealed to the trader/user.

Block

Designates more than 10,000 shares traded in a single transaction and is mostly attributed to institutional investors.

Block Trade

A large amount of stocks or bonds (at least 10,000 shares) traded in a single transaction.

Blue Chip Stock

Common stock for established, market leading companies with billions in capitalization.

Board of Directors

Elected or appointed individuals who collectively oversee the management of a corporation.

Bollinger Bands®

Designed by John Bollinger, this technical indicator measures volatility by plotting lines two standard deviations away from a Simple Moving Average.

Bond

A financial product that allows an investor to lend money to a government or company. The entity issues what is essentially an IOU, which is then purchased by investors. Investors receive the principal (full amount) at the bond's maturity (expiration), along with interest for the bond's term.

Bond Yield

The income that an investor will realize through purchasing a Bond.

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