Glossary B

Glossary B

Background checks

Verification of an individual’s personal and professional history, often conducted by employers or financial institutions.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Backtesting

    Evaluating the effectiveness of investment strategies using historical data.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Backtesting strategies

    Testing investment strategies using historical data to evaluate their effectiveness.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Barrier options

    Financial instruments that pay out only if the underlying asset reaches a certain price level.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Barrier to entry

    Obstacles that prevent new firms from entering a market, such as high start-up costs or regulatory requirements.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Basel III Accord

    A set of international banking regulations that aim to improve the stability and resilience of the banking sector.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Basel III regulations

    International banking regulations aimed at improving the stability and resilience of the banking sector.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Beta

    Statistical measure of a stock’s volatility relative to the overall market.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Beta Coefficient

    Measure of a stock’s volatility relative to the overall market.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Bid-ask spread

    Difference between the highest price a buyer is willing to pay for a security and the lowest price a seller is willing to accept.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Black knight

    Hostile bidder in a corporate takeover attempt.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Black-Scholes model

    Mathematical formula used to calculate the theoretical value of options contracts.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Block Trades

    Large trades of securities that are executed outside of the open market.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Blue sky laws

    State-level securities regulations designed to protect investors from fraudulent or risky investments.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Bond credit rating agencies

    Companies that assess the creditworthiness of bond issuers.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Bondholders’ debt

    Amount of debt owed to bondholders by a company or government.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Bond market volatility

    The degree of fluctuation in bond prices.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Bond portfolio diversification

    The practice of investing in a variety of bonds to reduce risk.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Bond pricing dynamics

    The factors that influence the price of a bond.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Bond ratings

    Assessment of the creditworthiness of a bond issuer, used by investors to evaluate risk.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Bonds

    Debt securities issued by companies or governments, typically with a fixed interest rate and maturity date.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Bond yield

    The return an investor receives on a bond investment.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Bonus issue

    Distribution of additional shares to existing shareholders, usually as a result of a company’s profits.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Bookbuilding

    Process of determining the final price and allocation of securities in a new offering based on demand from investors.

  • IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Book Building Phase

    The period during which investors place orders for a new securities offering.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Bookbuilding process

    Process of generating demand for a new securities offering by soliciting indications of interest from potential investors.

  • IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
  • Book building process

    The process of generating demand for a new securities offering.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Branding strategy

    Plan for creating and promoting a brand’s identity and image.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Brand positioning

    Strategy for differentiating a brand from its competitors and establishing its unique value proposition.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Brand reputation management

    Process of monitoring and improving a brand’s reputation and public perception.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Business plan development

    Process of creating a comprehensive document that outlines a company’s goals, strategies, and financial projections.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Buyers

    Individuals or entities that purchase goods or services.

  • Primary Vs. Secondary Markets: Investment Banking (Defined)