Bull Call Spread
Bull Call Spread A Bull Call Spread is an options trading strategy used when an investor anticipates a moderate rise in the price of an underlying asset. This strategy involves buying a call option at a lower strike price while…
Bull Market
Bull Market A bull market refers to a financial market condition characterized by rising prices of securities, typically by 20% or more from recent lows. This optimistic environment is often driven by strong economic indicators, investor confidence, and expectations of…
Bullish
Bull Call Spread A Bull Call Spread is an options trading strategy used when an investor anticipates a moderate rise in the price of an underlying asset. This strategy involves buying a call option at a lower strike price while…
Business Day
Business Day refers to any day on which normal business operations are conducted. Typically, this excludes weekends and public holidays. The specific definition can vary by region or industry. For example: If a company operates from Monday to Friday, a…
Business Development Company (BDC)
A Business Development Company (BDC) is a type of publicly traded investment company in the United States that focuses on providing capital to small and mid-sized businesses. BDCs are designed to help these businesses grow by offering financing options, including…
Business Ethics
Business Ethics refers to the principles and standards that guide behavior in the world of business. It encompasses the values and practices that determine how businesses conduct themselves in various situations, including relationships with stakeholders such as employees, customers, suppliers,…
Business Logistics
Business Logistics Business logistics refers to the planning, implementation, and control of the flow of goods, services, and information within a business and between businesses. It encompasses a wide range of activities including transportation, warehousing, inventory management, order fulfillment, and…
Business Model
A business model is a strategic plan that outlines how a company creates, delivers, and captures value. It encompasses the company's value proposition, target customers, revenue streams, cost structure, and competitive advantage. Examples: Subscription Model: Companies like Netflix charge a…
Butterfly Spread
Butterfly Spread A butterfly spread is an options trading strategy that involves the simultaneous buying and selling of options with three different strike prices, all with the same expiration date. It aims to profit from minimal price movement in the…
Buy & Hold Strategy
The "Buy & Hold Strategy" is an investment strategy that involves purchasing securities and holding them for a long period, regardless of fluctuations in the market. The rationale behind this approach is that, over time, the price of securities tends…
Buy Limit Order
A Buy Limit Order is a type of order to purchase a security at or below a specified price. This order is executed only if the market price reaches the limit price set by the trader. It allows traders to…
Buy Now, Pay Later (BNPL)
Buy Now, Pay Later (BNPL) refers to a financial arrangement that allows consumers to purchase goods or services and defer payment to a later date, often in installments. This payment model typically enables consumers to acquire items immediately while spreading…
Buy the Dip
Buy the Dip refers to a trading strategy where investors purchase an asset after a temporary decline in its price, with the expectation that the asset will recover and increase in value over time. This approach is based on the…
Buy-and-Hold Strategy
The Buy-and-Hold Strategy is an investment approach where an investor purchases stocks or other securities and holds them for a long period, regardless of market fluctuations. This strategy is based on the belief that, over time, the price of the…
Buy-Side Analyst
A Buy-Side Analyst is a financial professional who works for an investment firm, such as a mutual fund, hedge fund, or pension fund, and is responsible for analyzing investment opportunities to make informed buying decisions. Their primary role is to…
Buybacks
Buybacks refer to the process by which a company repurchases its own shares from the marketplace. This can lead to a reduction in the number of outstanding shares, often resulting in an increase in the share price and earnings per…
Buying in Thirds
Buying in Thirds refers to an investment strategy where an investor purchases an asset in three separate transactions, typically to manage risk and capitalize on price fluctuations. This method allows the investor to spread out their entry points, potentially averaging…
Buying to Cover
Buying to Cover: Buying to cover refers to the process in which a trader who has previously sold short an asset purchases it back to close their position. This action is taken to realize a profit or limit losses, effectively…
Byzantine Fault Tolerance
Byzantine Fault Tolerance (BFT) is a property of a distributed computing system that enables it to continue functioning correctly despite the presence of faults or malicious actors that may send conflicting information to different parts of the system. The term…
C-Suite
The term C-Suite refers to a corporation's most important senior executives whose titles typically start with the letter "C," which stands for "chief." This group is responsible for the overall strategic direction and management of the organization. Common roles within…
Calmar Ratio
Calmar Ratio The Calmar Ratio is a performance metric used to evaluate the return of an investment relative to its risk, specifically focusing on drawdown risk. It is calculated by dividing the annualized return of an investment by its maximum…
CAPE Ratio
CAPE Ratio: The CAPE Ratio, or Cyclically Adjusted Price-to-Earnings Ratio, is a valuation measure used to assess whether a stock or stock market is overvalued or undervalued. It is calculated by taking the current price of a stock or index…
Capital
Capital refers to financial assets or resources that can be utilized for the production of goods and services. It encompasses funds used to purchase equipment, invest in infrastructure, or support operations that generate income. Capital can also refer to physical…
Capital Appreciation
Capital appreciation refers to the increase in the value of an asset over time. It occurs when the market price of an investment rises above its purchase price, resulting in a profit for the investor upon sale. This increase can…
Capital Asset Pricing Model (CAPM)
Capital Asset Pricing Model (CAPM) is a financial model that establishes a linear relationship between the expected return of an asset and its systematic risk, represented by beta (β). The formula is expressed as:Expected Return (E(R)) = Risk-Free Rate (Rf)…