Financial terms

February 12, 2020

Bear Put Spread

What is a Bear Put Spread?DefinitionA bear put spread, also known as a long put spread or debit put spread, is a vertical spread which has to do with the buying of one put with the hope of profit...

February 12, 2020

Bear Market

What is a Bear Market?DefinitionA bear market is a situation when there is a 20% (or more) fall in the prices of securities from a recent high over a period of two months or more. A bear market c...

February 12, 2020

Balanced Investment Strategy

What is a Balanced Investment Strategy?DefinitionA balanced investment strategy is a technique used in portfolio allocation by combining the investments in a portfolio with the aim of balancing r...

February 12, 2020

Balanced Fund

What is a Balanced Fund?DefinitionA balanced fund, also known as asset allocation fund, is commonly classified by its equal asset allocation in a single portfolio. It is a mutual fund that compri...

February 12, 2020

Balanced Budget

What is a Balanced Budget?DefinitionA balanced budget is a financial term used to refer to a budget that does not have its expenses exceeding its revenues. It occurs when revenue is equals to or ...

February 12, 2020

Balance of Trade (BOT)

What is a Balance of Trade (BOT)?DefinitionBalance of trade is the difference in the value of a country’s exports and its imports. It is the most vital part of a current account. It is, therefo...

February 11, 2020

Bear Stearns

DefinitionThe Bear Sterns was a New York City based global investment bank and financial company that collapsed in 2008 during the subprime mortgage crisis. The company was founded in 1923 and lasted ...

February 11, 2020

Bear Spread

DefinitionA bear spread is a type of option strategy used in options trading. It occurs when an options trader purchases a contract at a higher strike price and sells at a lower strike price. For exam...

February 11, 2020

Bayes’ Theorem

DefinitionBayes’ theorem (also known as Bayes’ Law or Bayes’ Rule) is a mathematical formula for finding a probability when other probabilities are known (Conditional Probability). This theorem ...

February 11, 2020

Balance Sheet

What is the definition of a Balance Sheet?DefinitionThe balance sheet is a financial statement that reports a company’s total assets and how these assets are financed either through debt or equity p...