A condensed financial statement showing the nature and amount of a company's assets, liabilities and capital on a given date. In dollar amounts, the balance sheet shows what the company owned, what it owed and the ownership interest in the company of its stockholders.
One gradation on a 100-point scale representing 1%; used especially in expressing variations in the yields of bonds. Fixed income yields vary often and slightly within one percent and the basis point scale easily expresses these changes in hundredths of 1%. For example, the difference between 12.83% and 12.88% is 5 basis points.
A declining market. (See: Bull market)
Someone who believes the market will decline. (See: Bull)
A bond that does not have the owner's name registered on the books of the issuer. Interest and principal, when due, are payable to the holder.
BELOW INVESTMENT GRADE
Debt security that is rated below BBB/Baa3 by Standard & Poor's or Moody's respectively, or otherwise similarly rated by another independent credit rating agency, indicating a reduced creditworthiness and increased risk of default by the issuer compared to investment grade debt securities. It will usually offer a higher yield to compensate for the increased risk of default by the issuer. Also known as high yield bond. See Rating Agency, Debt Security, Investment Grade.
Reference against which the performance, risk characteristics or composition of the Sub-Fund may be measured.
Bid and Asked
Often referred to as a quotation or quote. The bid is the highest price anyone wants to pay for a security at a given time, the asked is the lowest price anyone will take at the same time. (See: Quote)
A large holding or transaction of stock popularly considered to be 10,000 shares or more.
BLUE CHIP COMPANIES
Companies considered by the Investment Manager to be nationally recognized, well-established and financially sound.
A company known nationally for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends.
Blue Sky Laws
A popular name for laws various states have enacted to protect the public against securities frauds. The term is believed to have originated when a judge ruled that a particular stock had about the same value as a patch of blue sky.
Basically an IOU or promissory note of a corporation, usually issued in multiples of $1,000 or $5,000, although $100 and $500 denominations are not unknown. A bond is evidence of a debt on which the issuing company usually promises to pay the bondholders a specified amount of interest for a specified length of time, and to repay the loan on the expiration date. In every case a bond represents debt - its holder is a creditor of the corporation and not a part owner, as is the shareholder.
An accounting term. of a stock is determined from a company's records, by adding all assets then deducting all debts and other liabilities, plus the liquidation price of any preferred issues. The sum arrived at is divided by the number of common shares outstanding and the result is book value per common share. of the assets of a company or a security may have little relationship to market value.
Bond denominated in USD that is issued by the government of developing countries under the Brady Plan. Named after former U.S. Secretary of the Treasury Nicholas Brady, the Brady Plan was specifically designed to assist Latin American countries to pay off a portion of their outstanding debt to the United States.
An agent who handles the public's orders to buy and sell securities, commodities or other property. A commission is charged for this service.
Money borrowed by brokers from banks or other brokers for a variety of uses. It may be used by specialists to help finance inventories of stock they deal in; by brokerage firms to finance the underwriting of new issues of corporate and municipal securities; to help finance a firm's own investments; and to help finance the purchase of securities for customers who prefer to use the broker's credit when they buy securities.
An advancing market. (See: Bear market)
One who believes the market will rise. (See: Bear)
The portion of the securities business in which institutional orders originate.