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

BUSINESS-TO-CONSUMER (B2C) EXCHANGE

An electronic commerce exchange where networks are used to connect consumers and retail buyers of ASSETS, goods or services with providers, manufacturers, or distributors. See also BUSINESSTOBUSINESS (B2B) EXCHANGE.

BUSINESS-TO-CONSUMER STRATEGY (B2C STRATEGY)

This is when businesses utilize their marketing strategies such as sending direct mailing ads, ads on the internet and advertising via coupons in the hopes to convert shoppers into loyal buyers.

BUSINESS-USE PROPERTY

Property used for the production of income, such as an office, or using your car for non-commuting business purposes.

BUSTED CONVERTIBLE

ACONVERTIBLE BOND that stands little or no chance of being converted into the issuer

BUTTERFLY SPREAD

A three-legged option spread in which each leg has the same expiration date but different strike prices. For example, a butterfly spread in soybean call options might consist of one long call

BUTTON AD

A graphical advertisment, smaller than a banner ad, typically measuring 120 x 90 pixels.

BUTTONWOOD AGREEMENT

The Buttonwood Agreement, which took place on May 17, 1792, started the New York Stock & Exchange Board (now called the New York Stock Exchange, NYSE). This agreement was signed by twenty-four

BUY AMERICAN ACT

The Buy American Act (BAA – ) passed in 1933 by Congress and signed by President Roosevelt, required the United States government to prefer U.S.-made products in its purchases.

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.

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.

BUY THE BOOK

An order typically from a large institutional investor to a broker to purchase all the shares available at the market from the specialist and other brokers and dealers at the current offer

BUY-BACK ALLOWANCE

An agreed sum offered by the seller if the buyer returns (resells) the PRODUCT to him. The buy-back allowance may only be forthcoming against a replacement purchase, and so can be used

BUY-BACK DEDUCTIBLE

A DEDUCTIBLE on an INSURANCE contract that is eliminated through payment of an incremental PREMIUM, thus providing the INSURED with FIRST DOLLAR COVERAGE in the event of a loss.

BUY-DOWN

Obtaining a lower interest rate (buying down the rate) by paying additional points to the lender. The lower rate may apply to the full duration of the loan or just the first

BUY-IN

A purchase of shares by a broker after a seller has failed to deliver similar shares, the original seller being charged any difference in cost or a purchase of shares in a

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