Business / Finance Glossary

Bull: An investor who thinks the market will rise. Related: Bear.

Bull CD: A bull CD pays its holder a specified percentage of the increase in return on a specified market index while guaranteeing a minimum rate of return.

Bull Market: Any market in which prices are in an upward trend.

Bull Spread: A spread strategy in which an investor buys an out-of-the-money put option, financing it by selling an out-of-the money call option on the same underlying security.

Bull-Bear Bond: Bond whose principal repayment is linked to the price of another security. The bonds are issued in two tranches: In the first tranche repayment increases with the price of the other security . . . View Full Definition

Bulldog Bond: Foreign bond issue made in London.

Bulldog Market: The foreign market in the United Kingdom.

Bullet Contract: A guaranteed investment contract purchased with a single (one-shot) premium. Related: Window contract.

Bullet Loan: A bank term loan that calls for no amortization.

Bullet Strategy: A fixed income strategy in which a portfolio is constructed so that the maturities of its securities are highly concentrated at one point on the yield curve.

Bullion Coins: Metal coins consisting of gold, silver, platinum, or palladium that are actively traded. Some examples include the American eagle and the Canadian maple leaf. Their price is directly connect . . . View Full Definition

Bullish: Words used to describe investor attitudes. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook.

Bump-Up CD: A certificate of deposit granting the owner the right to increase its yield one time for the remaining term of the CD. The power is exercised by the owner in the event of an interest rate hike.

Bunching: Describes the act of traders combining round-lot orders for execution at the same time. Bunching can also be used to combine odd-lot orders to save the odd-lot differential for customers. Al . . . View Full Definition

Bundling, Unbundling: Creation of securities either by combining primitive and derivative securities into one composite hybrid or by separating returns on an asset into classes.

Burn Rate: Used in venture capital financing to refer to the rate at which a start-up company expends capital to finance overhead costs prior to the generation of positive cash flow.

Burnout: Depletion of a tax shelter's benefits. In the context of mortgage backed securities it refers to the percentage of the pool that has prepaid their mortgage.

Business Cycle: Repetitive cycles of economic expansion and recession. The official peaks and troughs of the U.S. cycle are determined by the National Bureau of Economic Research in Cambridge, MA.

Business Day: A day in which financial markets are open for trading.

Business Failure: A business that has terminated operations with a loss to creditors.

Business Risk: The risk that the cash flow of an issuer will be impaired because of adverse economic conditions, making it difficult for the issuer to meet its operating expenses.

Business Segment Reporting: Reporting the results of the separate divisions or subsidiaries of a business.

Bust-Up Takeover: A leveraged buyout in which the buyer sells off the assets of the target_company to repay the debt that financed the takeover.

Busted Convertible: Related: Fixed income equivalent. Mainly applies to convertible securities. Convertible bond selling essentially as a straight bond. Assuming the issuer is 'money good,' or will continue to . . . View Full Definition

Butterfly: In the context of equities, a firm with two divisions may split into two companies and issue original shareholders two shares (one in each of the new companies) for every old share they have.

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