Archives: Terms

Definition of Banker’s Acceptance A Banker’s Acceptance (BA) is a short-term financial instrument that is used to guarantee payment for goods and services. It is essentially a form of credit that is issued by a bank on behalf of a customer. The customer requests the bank to issue the BA, […]

Definition of Bank Guarantee A bank guarantee is a promise from a bank to cover the losses of a customer in the event that the customer fails to fulfill their obligations. That means if the customer defaults on a loan or fails to pay for goods or services, the bank […]

Definition of Bank Run A bank run is a situation in which a large number of customers of a bank withdraw their deposits simultaneously. That means it is a situation in which customers lose confidence in a bank’s ability to meet its obligations and decide to withdraw their money. This […]

Definition of Barrels Of Oil Equivalent Per Day (BOE/D) Barrels of oil equivalent per day (BOE/D) is a unit of measure used to compare different types of energy sources. It is defined as the amount of energy produced by burning one barrel of crude oil. That means it is a […]

Definition of Basic Earnings Per Share (EPS) Basic Earnings Per Share (EPS) is a measure of a company’s profitability. It is calculated by dividing the company’s net income by the number of outstanding shares. That means it shows how much profit each share of the company’s stock earns. Example To […]

Definition of Basis Point (BPS) A basis point (BPS) is a unit of measure used in finance to describe the percentage change in the value of a financial instrument. It is equal to 0.01%, or one hundredth of a percent. That means a change of one basis point is equivalent […]

Definition of Basis Risk Basis risk is the risk that the actual return on an investment will differ from the expected return due to changes in the relationship between two assets or markets. That means it describes the uncertainty of the return on an investment due to changes in the […]

Definition of Bid and Ask The bid and ask are two prices that are used in the stock market to represent the current market price of a security. The bid price is the highest price that a buyer is willing to pay for a security, while the ask price is […]

Definition of Bear Market A bear market is a period of time in which the stock market is in decline. That means the prices of stocks and other securities are falling and investors are selling off their holdings. This is usually caused by a decrease in investor confidence, which leads […]