Definition of Bid-Ask Spread The bid-ask spread is the difference between the highest price a buyer is willing to pay for a security (the bid price) and the lowest price a seller is willing to accept (the ask price). That means it is the difference between the highest price a […]
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Benefit-Cost Ratio
Definition of Benefit-Cost Ratio The benefit-cost ratio (BCR) is a measure of the economic efficiency of a project or policy. It is calculated by dividing the total benefits of a project or policy by its total costs. That means it is a ratio that compares the total benefits of a […]
Read moreBehavioral Finance
Definition of Behavioral Finance Behavioral finance is a field of finance that studies the psychological and behavioral aspects of financial decision-making. That means it looks at how people make decisions about money and how those decisions are influenced by their emotions, beliefs, and biases. It is a relatively new field […]
Read moreBearer Bond
Definition of Bearer Bond A bearer bond is a type of debt security that does not have a registered owner. That means it is not registered in the issuer’s records and can be transferred from one person to another simply by handing it over. The holder of the bond is […]
Read moreBid Price
Definition of Bid Price The bid price is the highest price a buyer is willing to pay for a security. That means it is the maximum amount a buyer is willing to pay for a security in a given market. The bid price is usually lower than the ask price, […]
Read moreBill Of Exchange
Definition of Bill of Exchange A bill of exchange is a written order from one party (the drawer) to another (the drawee) to pay a certain sum of money at a specified date in the future. That means it is a type of promissory note that is used to transfer […]
Read moreBilateral Contract
Definition of Bilateral Contract A bilateral contract is an agreement between two parties in which each party promises to do something for the other. That means each party makes a promise to the other, and in return, the other party makes a promise to them. This type of contract is […]
Read moreBuild America Bonds (BABs)
Definition of Build America Bonds (BABs) Build America Bonds (BABs) are a specific type of municipal bond issued by state and local governments in the United States. These bonds are used as a means of financing public projects, such as critical infrastructure, schools, hospitals, and other essential facilities. What sets […]
Read moreBull Market
Definition of Bull Market A bull market is a period of time in which stock prices are rising or are expected to rise. That means it is a period of optimism in the stock market, where investors are confident that prices will continue to go up. As a result, investors […]
Read moreBuying On Margin
Definition of Buying on Margin Buying on margin is a type of investment strategy in which an investor borrows money from a broker to purchase an asset. That means the investor only has to put up a fraction of the purchase price, and the broker finances the rest. The investor […]
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