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Glossary

Baby Bond

A bond with a face value lower than $1k.

Back-End Load

A percentage fee that investors pay when redeeming mutual fund shares within a specified duration, typically 5 to 10 years.

Balanced Funds

Often referred to as ""Hybrid Funds", these are Mutual funds that invest in near equal proportions with both stocks and bonds for the purpose of growth and income.

Bar

A graphical representation of price activity for a specific time interval where open, high, low and closing prices for the interval are specified.

Base Currency

This is the first currency listed in a Forex currency pair. It serves as the basis for which the currency exchange rate will be quoted.

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.