Business / Finance Glossary

Average Equity: A customer's average daily balance in a trading account at a brokerage firm.

Average Life: Also referred to as the weighted-average life (WAL). The average number of years that each dollar of unpaid principal due on the mortgage remains outstanding. Average life is computed as the . . . View Full Definition

Average Maturity: The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average maturity.

Average Rate Of Return (ARR): The ratio of the average cash inflow to the amount invested.

Average Tax Rate: Taxes as a fraction of income; total taxes divided by total taxable income.

Average Up: A strategy used by investors to lower the overall cost of shares by buying as many shares with a given amount of capital in an increasing market. Buying $1000 worth of shares at $30, $35, $4 . . . View Full Definition

Away: A trade, quote, or market that does not originate with the dealer in question, e.g., 'the bid is 98-10 away from me.'

Away From The Market: In context of general equities, out of line with the inside market at this time, such as when a bid on a limit order is lower or the offer price is higher than the current market price for t . . . View Full Definition

Away From Us: Used in context of general equities, to characterize role of a competing broker/dealer. Trading away from us signifies that stock is bought and/or sold with institutions using other trading firms.

Axe To Grind: Used in context of general equities. Involvement in a security, whether through a position, order, or inquiry.

B: Fifth letter of a Nasdaq stock descriptor specifying that issue is the Class B shares of the company.

B2B: An Internet strategy of dealing directly with businesses, rather than consumers, i.e. business to (2) business.

Baby Bond: A bond with a par value of less than $1000.

Back Away: In the context of general equities, to withdraw from a previously declared interest, indication, or transaction; broker-dealer's failure, as a market maker in a given security, to make good . . . View Full Definition

Back Fee: The fee paid on the extension date if the buyer wishes to continue the option.

Back Months: In the context of futures and options trading, refers to the months of contracts with expiration dates farthest away. See farthest month.

Back Office: Brokerage house clerical operations that support, but do not include, the trading of stocks and other securities. All written confirmation and settlement of trades, record keeping, and regul . . . View Full Definition

Back On The Shelf: In the context of general equities, permanently cancelled order/interest in a stock by a customer. See: Take a powder.

Back Taxes: Due taxes that have not been paid on time.

Back Up: (1) When bond yields rise and prices fall, the market is said to backup. (2) An investor who swaps out of one security into another of shorter current maturity is said to back up.

Back Up The Truck: In the context of general equities, 'Prepare for a very large buyer.'

Back-End Load Fund: A mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. Some back-end load funds impose a full commission if the shares are redeemed within a designa . . . View Full Definition

Back-Testing: Creating a hypothetical portfolio performance history by applying current asset selection criteria to prior time periods.

Back-To-Back Financing: An intercompany loan channeled through a bank.

Back-To-Back Loan: A loan in which two companies in separate countries borrow each other's currency for a specific time period and repay the other's currency at an agreed-upon maturity.

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226