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. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
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