Financial Theory Terms

  1. Barriers To Entry

  2. Barriers To Exit

  3. Base Effect

  4. Base Period

  5. Basis Trading

  6. Bayes' Theorem

  7. Behavioral Accounting

  8. Behavioral Finance

  9. Below Full Employment Equilibrium

  10. Benchmark Error

  11. Benchmark For Correlation Values

  12. Benjamin Graham

  13. Benjamin Method

  14. Berkshire Hathaway

  15. Bernoulli's Hypothesis

  16. Berry Ratio

  17. Best Bid

  18. Beta

  19. Big Mac PPP

  20. Big Ticket Item

  21. Bilateral Credit Limit

  22. Bilateral Monopoly

  23. Binomial Distribution

  24. Binomial Tree

  25. Bird In Hand

  26. Birth-Death Ratio

  27. Black Box Model

  28. Black Scholes Model

  29. Black Wednesday

  30. Black's Model

  31. Black-Litterman Model

  32. Bleeding Edge Technology

  33. Blue Collar

  34. Bon Voyage Bonus

  35. Bonferroni Test

  36. Boolean Algebra

  37. Boom

  38. Boomernomics

  39. Brace Gatarek Musiela Model - BGM

  40. Brand Extension

  41. Brand Loyalty

  42. Brand Management

  43. Brand Personality

  44. Brand Piracy

  45. Break-Even Analysis

  46. Breakup Value

  47. Broke The Buck

  48. Bucket

  49. Business Ecosystem

  50. Business Process Redesign - BPR

  51. Bust-Up Takeover

  52. Buy And Hold

  53. Buyer's Market

  54. Calendar Effect

  55. Call Market

  56. Canadian Income Trust

  57. Canadian Securities Course™ - CSC™

  58. Capital Asset Pricing Model - CAPM

  59. Capital Flight

  60. Capital Flows

  61. Capital Goods Price Index - CGPI

  62. Capital Intensive

  63. Capital Investment

  64. Capital Investment Analysis

  65. Capital Maintenance

  66. Capital Market Line - CML

  67. Capital Recovery

  68. Capital Saturation

  69. Capitalization Rate

  70. Capitalization Structure

  71. Cash Available For Distribution - CAD

  72. Cash Charge

  73. Cash Flow Return on Investment - CFROI

  74. Cash Ratio

  75. Cash-On-Cash Return

  76. Centipede Game

  77. Central Limit Theorem - CLT

  78. Centrally Planned Economy

  79. Certainty Equivalent

  80. Characteristic Line

  81. Cheap Money

  82. Chicago School

  83. Clearing Price

  84. Cliometrics

  85. Cluster Analysis

  86. CMBX Indexes

  87. Coase Theorem

  88. Cognitive Dissonance

  89. Coiled Market

  90. Cokurtosis

  91. Collateralized Debt Obligation Cubed - CDO-Cubed

  92. Collateralized Debt Obligation Squared - CDO-Squared

  93. Commoditize

  94. Commodity ETF

  95. Common Pool Resource - CPR

  96. Common Resource

  97. Common Stock Fund

  98. Community Investing

  99. Comparative Advantage

  100. Competition-Driven Pricing

Hot Definitions
  1. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
  2. Yield Burning

    The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as "burning the yield," is done after the bond is placed in escrow for an investor who is awaiting repayment.
  3. Marginal Analysis

    An examination of the additional benefits of an activity compared to the additional costs of that activity. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions. Marginal analysis is also widely used in microeconomics when analyzing how a complex system is affected by marginal manipulation of its comprising variables.
  4. Treasury Inflation Protected Securities - TIPS

    A treasury security that is indexed to inflation in order to protect investors from the negative effects of inflation. TIPS are considered an extremely low-risk investment since they are backed by the U.S. government and since their par value rises with inflation, as measured by the Consumer Price Index, while their interest rate remains fixed.
  5. Gilt-Edged Switching

    The selling and repurchasing of certain high-grade stocks or bonds to capture profits. Gilt-edged switching involves gilt-edged security, which can be high-grade stock or bond issued by a financially stable company such as the Blue Chip companies or by certain governments.
  6. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited partner is the person or group that provides the capital to the MLP and receives periodic income distributions from the MLP's cash flow, whereas the general partner is the party responsible for managing the MLP's affairs and receives compensation that is linked to the performance of the venture.
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