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Information is the key to trade, and the first step for you is to understand the jargon in the stock trading business. Here is a list of banking and trading terminologies to equip you as you muscle your way to online trading. You may go through the entire list, or click on a letter below to display the words with prefix of your chosen letter.


Balanced Fund A mutual fund that generally has an objective of conserving the investors' initial principal, payment of current income, and promoting long-term growth of both principal and income, usually having a portfolio mix of bonds, preferred stocks, and common stocks
Barometer Stocks Standard, active stocks which lead the movement in other stocks and indicate the general trend of the market; stocks whose movements are followed systematically by other stocks
Bear Among operators in various markets, a person who believes that security or commodity prices will decline, and who accordingly sells or is willing to sell on that expectation, as distinguished from a bull
Bearer Security A security that has no identification as to owner, it being presumed to be owned by the bearer or the person who holds it and which securities are freely and easily negotiable
Bear Market The stock market when the influence of the bears is predominant and the trend of prices is downward; a market in which the downward tendency has been prolonged or is expected to be prolonged, with minor upward interruptions, over an extended period such as a year or more; in terms of the Dow Theory, a market in which the primary trend is downward
Bear Raid On the stock market, vigorous short selling by the bears, taking tactical advantage of the technical position of an overbought market to force prices down and thus compel those who are long of stocks to sell at a loss while the bears cover at a profit
Bellwether A security recognized as a reflector of a market trend
Below Par A price quoted below the face value of a security
Beta A measure of market risk and the extent to which the returns on the stock or stock portfolio move with the overall market for stocks as measured by some bond stock index; the risk that investors incur by investing in a specific firm's equity
Beta Stocks A coefficient that provides information on how a stock's return changes relative to changes in the market value. A positive beta stock tends to move in the same direction as the market; a negative beta stock tends to move against the market. A beta greater than one indicates a stock that tends to move proportionately more than the market. It rises further when the market rises and falls further when the market falls. A beta of less than one describes a stock that is less volatile than the market
Prices at which securities are wanted and at which they are offered for sale
Bid/Ask Spread The difference between the highest price that any buyer is willing to pay for a security and the lowest price that any seller is willing to receive for the security
Bid Price The price offered for a security or commodity by a prospective buyer; the price at which a security or commodity is wanted, and subject to immediate acceptance, unless otherwise stated, for the amount specified
Blank Transfer An assignment or transfer of stock in blank
Block A large amount of stock or bonds sold or offered for sale; a multiple of a full lot of stocks; a lot, batch, or bundle of checks deposited for credit with a bank together with their deposit slips for sorting into self-checks, clearinghouse checks, non-clearinghouse or messenger checks, and transit checks and for proving with the related deposit slips
Block Trades Trades of 10,000 shares or more of a given stock, or trades of shares with a market value of $200,000 or more.
Blue Chip Taken from poker terminology, stock issues commanding high prices, particularly in relation to earning power, relative to other stock issues; a stock to which a high degree of popular esteem or preference is attached so that it is relatively high-priced
Board Lot The unit of trading for securities upon an exchange
Bonus Stock Shares of stock given as a bonus to purchasers thereof, equivalent to selling stock at a discount
Book On the stock exchange, the specialist's book that contains the limited orders to buy and sell the stocks in that specialty
Borrowed Stock Stock borrowed by brokers to make delivery on short sale contracts executed for customers
Bottom Line A reference to the net income line on an income statement which summarizes the performance for the period; the ultimate result, outcome, expectation, or significant information to be considered
Bottom Price The lowest price; the price at which a single security or the market average reaches the lowest point in a single day's trading, or in a major or minor movement
Bourse The stock exchanges in the principal cities of continental Europe. Boerse is the Dutch equivalent; Bolsa is the Spanish equivalent
Break-Even To conclude a transaction or level of activity with neither a profit nor a loss. A break-even point is reached when revenue of a firm equals costs and expenses
Break-Even Analysis Financial analysis involving the computation of the amount of sales required to cover all fixed and variable costs without making a profit or loss
Break-Even Point A level of sales at which revenue equals expenses and at which level of activity neither a profit nor a loss is made
Break-Even Ratio A measure of the relationship of debt service and operating expenses to gross income; the occupancy level to make neither a profit nor a loss
Break-Up Point Liquidating value, indicating the actual or estimated market value of net assets per share applicable to each class of security according to its priority in the capitalization
Broker A person engaged in the business of buying and selling securities for the account of others
Brokerage License The privilege or right conferred by a state to conduct a business of a stockbroker, real estate broker, and others
Brokering The practice of accepting commission for services provided which implies a fiduciary obligation to clients with respect to the filling of orders and other matters, also called broking
Bull A person who believes that security or commodity prices will rise and who buys on that assumption
Bull Market A market in which the bulls are in ascendancy and optimism and rising prices prevail; a market in which the primary trend is upward
Buy-And-Hold An investment strategy of buying common stock and holding it for an indefinite period while ignoring market fluctuations
Buying Back A reference to common stock repurchases by a company or investor
Buying Order An order given to a broker to purchase securities, commodities, and other items, with certain specifications. Among brokerage houses, there are two ordinary classes of round-lot orders as to price limits: market orders and limit orders. They are classified by time limits: day orders, week or month orders, and open or good until cancelled orders. Special types of orders include stop orders, stop and limit orders, discretionary orders, immediate or cancel orders, and cancel orders


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