Backdating
DefinitionOptions backdating is the practice of altering the date a stock option was granted, to a usually earlier date at which the underlying stock price was lower. This is a way of repricing options to make them valuable or more valuable when the option "strike price" is fixed to the stock price at the date the option was granted....
Bollinger bands
Bollinger bands saw its inception back in the late 20th century when John Bollinger – the creator of Bollinger bands – found a way to predict the changes in the short-term security market. What exactly are Bollinger bands? In the simplest of terms, Bollinger Bands is a graph that helps investors in predicting the fluctuations in the prices of...
Bagel Land
What is 'Bagel Land' A slang term that represents a stock or other security that is approaching $0 in price. Arriving in bagel land is usually the result of one or more major business problems that may not be resolvable. This term is typically used to describe an asset that has fallen from grace as opposed to...
Bad Debt Reserve
What is 'Bad Debt Reserve' An account set aside by a company to account for and offset losses that arise as a result of defaults from futures loans. This figure may be calculated based on historical norms or other known information about the relative safety of the debt. Also known as a "loss reserve". ...
Back Up The Truck
What is "backing up the truck?" Backing up the truck refers to the purchase of a large position in a stock or other financial asset by an investor or trader. Typically, when someone is willing to back up the truck on a financial asset, this implies that they're extremely bullish on that asset's performance. Why would an investor want to back...
Bad Check
What is 'Bad Check' A check drawn on a nonexistent account or on an account with insufficient funds to honor the check when presented. "Passing" bad checks is illegal, and the crime can range from a misdemeanor to a felony, depending on the amounts involved and whether the activity involved crossing state lines. ...
Bailout Bond
What is 'Bailout Bond' A debt security issued by the Resolution Funding Corporation to bail out the savings and loan associations during the financial crisis of the late 1980s and early 1990s. The bailout bonds had zero-coupon Treasury bonds backing the principal amounts, making the instruments a safe investment. Explaining 'Bailout Bond' In the...
Backpricing
What is 'Backpricing' A pricing method used in specific futures contracts whereby the price of the commodity to be delivered is priced by the purchaser at some future date after entering into the position. Explaining 'Backpricing' The price at which the purchaser can set the deliverable commodity must be relative to any monthly or...
Backorder
What is 'Backorder' An order for a good or service that cannot be filled at the current time due to a lack of available supply. The higher the number of items backordered, the higher the demand for the item. Explaining 'Backorder' Backorders are an important factor in inventory management analysis. If a company consistently...
Baltic Dry Index
DefinitionThe Baltic Dry Index, is issued daily by the London-based Baltic Exchange. The BDI is a composite of the Capesize, Panamax and Supramax Timecharter Averages. It is reported around the world as a proxy for dry bulk shipping stocks as well as a general shipping market bellwether. Baltic Dry Index The Baltic Dry Index or the BDI is a...