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

Category: Finance Dictionary

BURIED POSITION

Placing an ad between other ads in a print publication, so that readers are less likely to see it.

BUSINESS AREA

The company’s operations. Fixed assets and accounts receivable may be balanced in accounting using business areas.

BUSINESS CRITICAL POINT

When a critical process or function has made it so that a business or firm is no longer able to continue.

BUSINESS IMPACT ANALYSIS (BIA)

A formal analysis of the effect on the business if a specific set of IT services are not available. It will also identify the minimum set of services that an organisation will

BUSINESS MATTER ANNOTATION

Comments on business matters that were handled and stored on a record. These are matters that also require use of the record which also follow up with the action(s) taken after the

BUSINESS PROCESS IMPROVEMENT (BPI)

Analyzing business processes to determine if there is a more effective way to perform the existing ones, or if they should be completely re-designed. Typical reasons for BPI include outmoded processes or

BUSINESS SCENARIO

A business scenario is a view of a possible future external environment based on a set of assumptions about important uncertainties which face the business and which may affect organizational performance.

BUSINESS-TO-BUSINESS (B2B) EXCHANGE

An electronic commerce exchange where networks are used to connect institutional buyers and sellers of ASSETS, goods or services. See also ALTERNATIVE TRADING SYSTEM, BUSINESSTOCONSUMER (B2C) EXCHANGE, ELECTRONIC COMMUNICATIONS NETWORK.

BUY AND WRITE

Strategy requiring the simultaneous purchase of underlying securities and the writing of call options over those securities representing the same number of those securities.

BYPRODUCT

A secondary result, unintended but inevitably produced in doing or producing something else.

BETTERMENTS

A asset whose changes are made to make services better.

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,

BALL BEARING

When balls serve as friction in a bearing. It is designed to reduce friction.

BANQUET ROOM

A big hotel room that the public can use and serve food in. AKA banqueting room and function room.

BARRIER OPTION

A COMPLEX DERIVATIVE contract that creates or extinguishes an underlying EUROPEAN OPTION as the price of the market reference moves through a specified BARRIER. Four versions of the barrier option are commonly

BASKET SWAP

A CREDIT DERIVATIVE contract that involves the exchange of a fixed or floating PREMIUM for a compensatory payment if one or more reference credits in a predefined BASKET DEFAULTS. The swap provides

BED NIGHT

The way hotels measure occupancy. It is one person per bed per night.

BELOW MARKET INTEREST RATE

A rate that is less than the commercial bank lending rate. They are offered to the low or moderate income customers.

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