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Basis Point |
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A basis point is one one-hundredth
of a percent i.e. 50 basis points or “bps”
is 0.5%. |
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Bear / Bear Market |
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Bear is a term describing
an investor who thinks that a market will decline.
The term also refers to a short position held by
a market maker. A Bear Market is a market where
prices are falling over an extended period. |
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Bellwether |
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A stock or bond that is widely
believed to be an indicator of the overall market's
condition. Also known as Barometer stock. |
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Beta |
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This coefficient measures
a fund’s relative volatility to a market index.
A fund with a beta greater than 1.0 is more volatile
than the market while a fund with a beta less than
1.0 is less volatile than the market. A beta of
1.0 indicates the stock moves in step with the underlying
index. A beta value of 1.1 indicates a 1.10% movement
for a 1% move in the index, regardless of direction. |
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Bid Price |
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The price at which an investor
may sell units of a fund back to the fund manager.
It is also the price at which a market maker will
buy shares |
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Blue Chips |
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Large, continuously well
performing stock, presumed to be among the safer
investments on an exchange. |
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Bond |
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A debt investment, with which
the investor loans money to an entity (company or
government) that borrows the funds for a defined
period of time at a specified interest rate. The
indebted entity issues investors a certificate,
or bond, that states the interest rate (coupon rate)
that will be paid and when the loaned funds are
to be returned (maturity date). Interest on bonds
is usually paid every six months (semi-annually). |
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