Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: B

BAIL OUT

1. selling too much stock. It shows that the firm may be going under. 2. giving emergency help to a company to keep it going.

BACK TO BACK

Agreements that are linked. Each agreement has the same terms.

BACKLIST

The titles a publisher has that are not on the current list but hidden in the back of a catalog.

BADWILL

When a company has a bad business practice that investors find out about. Revenue is lost as well as investors, customers, and suppliers. The market value also goes down. This can also

BANDWIDTH

The speed signals travel through cable. The width of the pipe is an element in this figure. The analog and digital transmissions are used to calculate this. Digital transmissions require more space

BARGAIN PURCHASE OPTION

When a leasee can buy the asset leased at the end of the term. The price is lowver than fair market value. If noncancelable lease has this clause it is a capital

BASIC

It stands for beginners all purpose symbolic instruction code. It makes it easy for a user to interact with a program. Microsoft turned this into DOS and visual basic programs. It acts

BELL CURVE

A curve shaped like a bell that indicates normal distribution.

BERMUDA OPTION

An OPTION that can only be EXERCISED on specific dates prior to maturity (e.g., once every month, quarter, or year). Also known as a MIDATLANTIC OPTION. See also AMERICAN OPTION, EUROPEAN OPTION.

BEST BEFORE DATE

A date on food items. It tells when the item will spoil if kept under recommended conditions. Refer to use by date.

BETA

1. The UK classification of the most traded stocks. 2. The US measurement of risk and volatility of the stock market based on the standards. Each stock is given a standard amount

BIG BEAST

A person who seems larger than life in their field.

BILATERAL MONOPOLY

When the market has one buyer and one seller. Its common in intermediate states in production. A monopoly or monopsoly is different than this term.

BILLIONTH

A single part in a billion. The fraction for it is 1/1,000,000,000.

BIOTA

Any nonhuman life in the geographical area.

BLACK SCHOLES OPTION-PRICING MODEL

How European options are valued for the sake of equities. The stocks volatility, price, dividends, interest rates, and expiration are used. The assumptions used are no dividend pay, simultaneous trading, no commissions,

BLAST FURNACE

A metal cylinder that is lined with bricks used to remove impurities from iron. High air pressure is pushed through the bottom to make the process of purification faster.

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