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

Category: Finance Dictionary

BUSINESS-TO-BUSINESS (B2B)

(B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and business-to-government (B2G).

BUY AND HOLD

Buy and hold is a long term investment strategy based on the view that in the long run financial markets give a good rate of return despite periods of volatility or decline.

BYPASS TRUST

Trusts are used in the United States as a legitimate tool to circumvent gift tax, and to minimize taxation of assets upon death of a married couple.

BACK DATE

The date on a document that is retroactive. AKA ante date. It is the opposite of post date.

BACKFLUSH COSTING

Pricing a product by using the finished result and working your way back. When inventory must be kept low this is the way costing is done. AKA backflush accounting.

BACKTESTING

The process of determining the validity of a VALUE ATRISK model by comparing actual profit and loss experience with results predicted by the model. The process is also applicable in investment management,

BALANCED SCORECARD (BSC)

When past good performance is used to predict future performance. The cards do not take in to consideration the environment.

BANQUE D

In France, a MERCHANT BANK that invests its own CAPITAL in support of CORPORATE FINANCE transactions and engages in securities UNDERWRITING and TRADING.

BARRIER MATERIAL

Material used to make barrels. It is meant to stop leaking of gas, liquid, and radiation.

BASIS

1.the days in a year used for interest computation. 2. when adjustments are made between currencies. 3. the price difference between the cash and futures market for an asset. 4. the purchase

BED AND BREAKFASTING

In the UK markets, the practice of selling COMMON STOCK of a company on one day and repurchasing it the following day in order to establish a gain or loss for tax

BELOW COST

Acknowledging an expense when it is incurred. When paid the tranaction is recorded.

BENEFIT TRIGGERS

The conditions that must be met before any benefits are paid to the party.

BERYLLIUM (BE)

A metal found in alloys that is toxic. It is used in aircrafts, rockets, missiles, spacecrafts, and nuclear reactors. If exposed for less than 50 days poisoning occurs. The result is fatality

BIBLIOGRAPHY

Books or articles that are related to a subject or author. This can be an annotated bibliography as well. A large bibliography is published as a book sometimes.

BIG UGLIES

COMMON STOCK issued by companies in industrial sectors that are not considered to be

BILLBOARD

1. an announcement that identifies the sponsors of the advertising. It is shown at the end or the beginning or a program on TV or radio. 2. A large outdoor sign that

BINOMIAL DISTRIBUTION

When something can end only two ways. It is either better or worse, yes or no, or head or tail for example. If the success probability is known than a calculation can

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