Financial Terms Excerpts
Bank Run
A bank run is an event that happens when a bank or financial institution’s customers choose to withdraw all of their deposits at the same time. This happens because of fears of the solvency of a particular bank. The effect is like a snowball. The more individuals who pull out their funds the greater the default probability becomes. This in [...]
Bank Stress Tests
Bank stress tests are special analyses that a government authority or company runs to determine the strength of a bank to resist difficult economic times. They conduct such tests using economic conditions that are unfavorable to learn if the banks possess sufficient capital to survive the effects of negative financial environments. In the United States, the law requires that banks [...]
Bankruptcy
Bankruptcy is a term that refers to the elimination or restructuring of a person or company’s debt. Three principal different types of bankruptcy filing are available. These are the personal bankruptcy options of Chapter 7 and Chapter 13 filings, and the business bankruptcy restructuring option of Chapter 11. Individuals avail themselves of Chapter 7 or Chapter 13 bankruptcy filings when [...]
Barclays
Barclays is a British based banking giant that calls its twin home markets both the United Kingdom and the United States. The bank is well known as a transatlantic consumer, investment, and corporate bank that provide financial services and products through investment, corporate, personal banking, wealth management, and credit cards. The banking group’s goal is to concentrate on its core [...]
Barings Bank Collapse
The Barings Bank collapse is a tale of tragedy involving greed, poor banking oversight, and a complete failure of internal checks and balances that ruined the oldest bank in London and banker to the Queen. It took only several weeks for Nick Leeson the Singapore trading head of the bank to amass hundreds of millions of pounds in losses which [...]
Barristers
Barristers are one of two types of lawyers used in many systems for different functions in the case law and courts arenas. The other designation of lawyer is a solicitor. Barristers’ roles prove to be one of simply representing clients as their personal advocate in the courts of the appropriate jurisdiction. Barristers’ duties include actually speaking in court. Here, they [...]
Barron’s
Barron’s refers to the weekly American-based newspaper that the Dow Jones & Company has published since 1921. It was then that the founder Clarence Barron launched the popular feature of American business which to this day still covers American market developments, financial information, and applicable supporting statistics. Every weekly issue delivers both an effective summary of the past week’s stock [...]
Barter
Barter is a concept that pre-dates the invention of money. It proves to be the practice of trading goods, products, or services for other such products, services, and goods. Barter is a simpler way of transacting business, commonly without using money. Although money systems have been in existence and well established for several thousand years, bartering for things as a [...]
Bear Market
Bear markets are periods in which stock markets drop for an extended amount of time. These pullbacks typically run to twenty percent or even greater amounts of the underlying stock values. Bear markets are the direct opposites of bull markets, when prices rise for extended amounts of time. Bear markets and their accompanying drastic drops in stock share prices are [...]
Bear Stearns
Bear Stearns was formerly among the biggest important securities trading outfits within the United States. At one point it boasted a total asset base of almost $400 billion. The investment bank pursued a wide variety of financial activities. Among these were the clearing and trading of derivatives and securities, investment banking, brokerage account services, and creating and packaging up residential [...]
Ben Bernanke
Ben Bernanke served as Chairman of the Federal Reserve System’s Board of Governors from February 1, 2006 until January 31, 2014. As the successor to former Chairman Alan Greenspan, Bernanke received his Congressional approval because of his expertise in the failed monetary policies led to the Great Depression and for his ideology of targeting inflation. Bernanke left many legacies from [...]
Benchmarking
Benchmarking is a practice favored across many different industries and individual corporations. It refers to the idea of making a comparison between one’s own company, processes, and operations against competing businesses within the entire market or only the businesses’ own sector of the market. Companies can carry out this activity utilizing processes, products, approaches, or functions. There are a range [...]
Benjamin Graham
Benjamin Graham was born in 1894 in London, the then British Empire to an importer. When he was still young, his family moved to the United States to open up an import business. Despite his father dying shortly thereafter and his mother subsequently losing the family savings in 1907 to a financial crisis, Graham excelled in school and attended Columbia [...]
Berkshire Hathaway
Berkshire Hathaway represents the multinational American holding company that has been ranked among the largest five publically traded companies in the world by Forbes magazine. The conglomerate investment company has been controlled by Warren Buffet since the mid 1960s. Its headquarters are found in Omaha, Nebraska. Originally Berkshire Hathaway was involved with manufacturing textiles and cotton manufacturing. Its roots go [...]
Bernard Madoff
Bernard Madoff used to be a nationally famous and admired stock broker and investment advisor. In the end, it turned out that he oversaw a multibillion dollar empire which he ran as an elaborate and far-flung Ponzi scheme. Madoff is presently serving out a 150 year prison sentence for his crimes in this endeavor. Bernard Madoff was born in Queens, [...]
BG Group
The BG Group, or British Gas group, was once the largest multinational gas company headquartered in Britain. It was based in Reading, England. The company became acquired via an agreement announced on April 8th of 2015 by Royal Dutch Shell to take the company over in a friendly acquisition which saw 19% of the stock in the newly combined entity [...]
Big Oil Super Majors
The Big Oil Super-majors are the six to eight companies which oil analysts utilize to talk about the world’s biggest publically owned gas and oil corporations. They are often just called the super-majors, oil majors, or big oil. Today’s super-majors are the following: British based BP plc and Royal Dutch Shell plc, American based Exxon Mobile Corporation and Chevron Corporation, [...]
Binary Options
Binary Options are a fairly new means of trading on the financial markets in the United States. They became a legal vehicle within the U.S. only back in 2008. Since then, they have rapidly evolved into what is now one of the quickest and simplest means of trading. These options are different from most other forms of trading since participants [...]
Bipartisan
In the two party system found in the United States and other countries around the world, Bi-partisan signifies any resolution, act, or bill, as well as any action taken by a political governing body, where the two major political parties agree on the item or action in question. Compromises between two parties are referred to as bi-partisan when they bring [...]
Bitcoin Cash
Bitcoin Cash refers to the first split from the legendary crypto-currency market leading Bitcoin block chain. On August 1st the splinter group created its new crypto-currency Bitcoin Cash. The developer of this rival to the original behemoth is Calin Culianu. He explains that there are two principle noteworthy changes to the new bitcoin. These are an increase in the size [...]
Bitcoin Crash
The Bitcoin Crash refers to one of five different incidents when the decade old crypto-currency saw its prices plunge off a cliff, sometimes by more than 50 percent in only two trading days. The most recent crash in the BTC has happened in 2017. In this spectacular crisis of the world’s greatest and leading crypto-currency, the BTC price plunged from [...]
Bitcoin Currency (BTC)
Bitcoin is the name of a new electronic currency. An unknown individual who called himself Satoshi Nakamoto created this currency in 2009. This world’s first widespread virtual currency appeals to many individuals because there are no banks or governments involved in issuing, trading, spending, or processing the transactions. There are also no transaction fees involved. Owners do not have to [...]
Black Monday
Black Monday refers to three separate stock market crashes that coincidentally happened on Mondays. These were the crashes of October 19 in 1987, the one on October 28 in 1929, and the stock market correction crash of August 24 in 2015. The Black Monday in 1987 proves to be the most common reference for the phrase. It was the biggest [...]
Black Thursday
Black Thursday began the stock market crash of 1929. That Thursday saw the markets decline steeply by 11%. The following Black Monday of 1929 a few days later proved to be worse. Stocks crashed another 13% that Monday, October 28th. The following day became known as Black Tuesday as all of the remaining gains for the whole year were wiped [...]
Black Wednesday
Black Wednesday refers to September 16, 1992. This proved to be the day that Britain was forced to withdraw from the European Exchange Rate Mechanism system of currency band pegs. The same day it had to allow the pound to be devalued by 15%. The catastrophe for the Bank of England and British government occurred only two years after British [...]
Blanket Loans
Blanket loans are those which cover multiple properties or parcels of land. They handle the costs for or can be secured by more than a single piece of real estate. These are most typically employed by commercial land developers or investors. For individual consumers, they can be utilized as a type of bridge between new and old properties and mortgages. [...]
Blockchain
Blockchain refers to a technology that serves as a means of structuring and storing data. As such it is the ultimate foundation of the revolutionary crypto-currencies such as Bitcoin and Ether. The true breakthrough in coding capability permits participants to share digital ledgers back and forth over a computer network. Its genius and appeal lies in the fact that it [...]
Bloomberg
Bloomberg is a multimedia news and financial data services provider company. It puts decision makers in touch with an enormous network of ideas, people, and information. Bloomberg rapidly deploys financial and business news, information, insight, and general news to people around the world. The company provides important decision makers with the necessary edge through financial and business information intelligence. The [...]
Blue Chip Stocks
A blue chip stock proves to be the nickname given to a stock that belongs to a firmly established company. Blue chip stock companies commonly feature no major outstanding liabilities and incredibly stable earnings track records. These blue chips are believed to be in excellent financial condition, and are commonly referred to as safe investments. Blue chip company stocks feature [...]
BNP Paribas
BNP Paribas is the largest French-based bank in the world. It has strong roots in the banking history of Europe. Today it remains one of the leading banks on the continent and Euro zone as well as an important international banking group. The group claims 189,000 employees around the world, of which the overwhelming majority of 146,610 are based in [...]