Bailout
What is a 'Bailout' A bailout is a situation in which a business, an individual or a government offers money to a failing business to prevent the consequences that arise from the business's downfall. Bailouts can take the form of loans, bonds, stocks or cash. They may require reimbursement. Bailouts have traditionally occurred in industries or businesses...
Back Up
What is a back up and what does it mean for the securities market A back up is a slang term for the movement in spread, price or yield of a security, which makes it more expensive to issue. A back up is characterized by an increase in bond yields and a decrease in price. The price of a security...
Back Fee
What is 'Back Fee' A payment made to the writer of a compound option in the case that the call option is exercised in order to obtain a put option. Back fee is a premium charged at the second portion of the option, since a compound option is an option to purchase an option. Explaining 'Back...
Backwardation
DefinitionNormal backwardation, also sometimes called backwardation, is the market condition wherein the price of a commodities' forward or futures contract is trading below the expected spot price at contract maturity. The resulting futures or forward curve would typically be downward sloping, since contracts for further dates would typically trade at even lower prices. In practice, the expected future spot...
Balance Reporting
What is balance reporting and why is it important for businesses Balance reporting is the process of creating a financial report that provides an overview of a company's assets, liabilities, and equity. This type of report is important for businesses because it gives stakeholders a clear picture of the company's financial health. Balance reporting can also help businesses to identify...
Backflush Costing
What is 'Backflush Costing' Backflush costing is a product costing system generally used in a just-in-time inventory environment. Backflush costing delays the costing process until the production of goods is completed. Costs are then "flushed" back at the end of the production run and assigned to the goods. This eliminates the detailed tracking of costs throughout the...
Back-End Load
What is a 'Back-End Load' A back-end load is a fee (sales charge or load) that investors pay when selling mutual fund shares, and the fee amounts to a percentage of the value of the share being sold. A back-end load can be a flat fee or can gradually decrease over time, usually within five to 10...
Back-To-Back Letters Of Credit
What are 'Back-To-Back Letters Of Credit' Back-to-back letters of credit consist of two letters of credit (LCs) used together to finance a transaction. A back-to-back LC is usually used in a transaction involving an intermediary between the buyer and seller, such as a broker, or when a seller must purchase the goods it will sell from a...
Bail Bond
What is bail bond and why do people need it Bail bonds are a type of surety bond that is posted on behalf of a defendant in order to secure their release from custody pending trial. The bail bond is typically set by a judge during the arraignment process and is based on the severity of the crime, the defendant's...
Balance Sheet Reserves
What are 'Balance Sheet Reserves' Balance sheet reserves refer to the amount expressed as a liability on the insurance company's balance sheet for benefits owed to policy owners. Balance sheet reserves represent the amount of money insurance companies set aside for future insurance claims or claims that have been filed but not yet reported to the insurance...