Business / Finance Glossary

Bottom: Refers to the base support level for market prices of any type. Also used in the context of securities to refer to the lowest market price of a security during a specific time-frame.

Bottom Fisher: An investor seeking stocks that have fallen to prices at or near their bottom, which he or she believes will trend up in the future.

Bottom-Up Equity Management Style: A management style that de-emphasizes the significance of economic and market cycles, focusing instead on the analysis of individual stocks.

Bought Deal: Security issue in which one or two underwriters buy the entire issue.

Bounce: A check returned by a bank because it is not payable, usually because of insufficient funds. Also used in the context of securities to refer to the rejection and ensuing reclamation of a sec . . . View Full Definition

Bourse: French for a stock market.

Boutique: A small, specialized brokerage firm that offers limited services and products to a limited number of clients. Antithesis of financial supermarket.

Box: The actual physical location at a brokerage house or bank where securities or other documents are stored for safekeeping. Alternatively, a quotation machine or battery march.

Bracket: A term signifying the extent of an underwriter's commitment in a new issue, e.g., major bracket or minor bracket.

Bracket Creep: The gradual movement into higher tax brackets when incomes increase as a result of inflation.

Brady Bonds: Bonds issued by emerging countries under a debt reduction plan.

Branch: An operation in a foreign country incorporated in the home country.

Breadth Of The Market: In the context of general equities, percentage of stocks participating in a particular market move. Technical analysts say there was significant breadth if two-thirds of the stocks listed on . . . View Full Definition

Break: A rapid and sharp price decline. Related: Crash.

Break Price: Used in the context of general equities. Change one's offering or bid prices to move to a more realistic, tight level where execution is more feasible. Often done to trim one's position, thu . . . View Full Definition

Break-Even Analysis: An analysis of the level of sales at which a project would make zero profit.

Break-Even Lease Payment: The lease payment at which a party to a prospective lease is indifferent between entering and not entering into a lease arrangement.

Break-Even Payment Rate: The prepayment rate of an MBS coupon that will produce the same cash flow yield (CFY) as that of a predetermined benchmark MBS coupon. Used to identify for coupons higher than the benchmark . . . View Full Definition

Break-Even Point: Refers to the price at which a transaction produces neither a gain nor a loss. In the context of options, the term has the additonal definitions: 1. Long calls and short uncovered calls: str . . . View Full Definition

Break-Even Tax Rate: The tax rate at which a party to a prospective transaction is indifferent between entering into and not entering into the transaction.

Break-Even Time: Related: Premium payback period.

Breakeven Analysis: An analysis tool that models how revenue, expenses, and profit vary with changes in sales volume. Breakeven analysis estimates the sales volume needed to cover fixed and variable expenses.

Breakeven Point: The sales level at which revenues equal expenses (fixed and variable).

Breaking The Syndicate: Terminating an agreement among underwriters, specifically the investment banking group assembled to underwrite the issue of a security.

Breakout: A rise in a security's price above a resistance level (commonly its previous high price) or a drop below a level of support (commonly the former lowest price.) A breakout is taken to signify . . . View Full Definition

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