Back Months
What is 'Back Months' The available futures contracts for a particular commodity that possess expirations or delivery dates furthest into the future. Also referred to as deferred futures or forward months. Explaining 'Back Months' Back month futures contracts may have identical actuals as those contracts are expiring in the near term. However, as the...
Bad Debt
What is bad debt and how does it affect your credit score Most people are familiar with the term "bad debt." Generally, bad debt is any debt that has a negative impact on your finances. This can include credit card debt, personal loans, and even some types of student loans. Bad debt can also refer to debt that is difficult...
Bailment
What is 'Bailment' The contractual transfer of possession of assets or property for a specific objective. In bailment, the deliverer of the asset is the bailor, and the receiver is the bailee. In a bailment transaction, ownership is never transfered, and the bailor is generally not entitled to use the property while it's in possession of the...
Backspread
A backspread is a type of options spread in which the trader holds more long positions than short positions. This strategy can be used to profit when the price of the underlying security moves in either direction. There are several different types of backspreads, each with its own set of benefits and risks. In this article, we will discuss...
Back-to-Back Commitment
What is 'Back-to-Back Commitment' A commitment to make a second take-out loan that piggybacks another loan. With a back-to-back commitment, once the terms of the first loan are satisfied, it will be rolled into the second loan. Explaining 'Back-to-Back Commitment' The best example of a back-to-back commitment is when a bank makes a construction...
Balance Of Payments (BOP)
What is the Balance of Payments (BOP)? The balance of payments (BOP) is an accounting record of all monetary transactions between a country and the rest of the world. It includes all payments and receipts for trade in goods and services, investment income, and transfer payments. The BOP is used to measure the health of a country's economy and its...
Back Month Contract
What is 'Back Month Contract' A type of futures contract that expires in any month past the front month futures contract. The price of the first back month futures contract is often used along with the front month futures price to calculate the calender spread. Also referred to as a "far month contract". Explaining...
Stock Bag Holder
Definition In U.S. financial slang, a bagholder is a shareholder left holding shares of worthless stocks. What is a 'Stock Bag Holder' An informal investing word used to describe an investor who has a holding in a stock that has lost value to the point that it is no longer worth anything. Typically, the bag holder will maintain his or her position...
Back Door Listings
When a company fails to meet the listing requirements of a stock exchange, it may turn to a back door listing as a way to go public. In this process, the company acquires an already listed company, thus bypassing the stringent listing requirements of traditional exchanges. While there are some advantages to this strategy, there are also several risks...
Standard Deviation
In mathematics, standard deviation is the degree of the dispersion from a set of data’s mean. The SD is higher when the data is more stretched. In other terms, the square root of the variance is the standard deviation. In finance, the representation of standard deviation is associated with the risk in trading securities, such as bonds, property and...