BASIS OF ALLOTMENT

BASIS OF ALLOTMENT

Pattern of allotment of stock/bond/security among different categories of applicants.

BALANCE SHEET

BALANCE SHEET

It is an accounting statement of a company's asset and liabilities. It gives a snapshot of the company's assets at a specific period of time: basically the value of assets as on date and how the assets have been financed.

BOND RATING

BOND RATING

It is a way to measure the creditworthiness of an issuer. Government bonds are Sovereign, are safest and don’t need ratings. Corporate bonds generally are rated from AAA to A- i.e. most secure to moderately secure. 

BID

BID

It is a price at which investor or buyer is willing to invest/bid/purchase a security.

BUY-BACK

BUY-BACK

Buy-back refers to the process by which a company repurchases its own shares and securities.

BEAR MARKET

BEAR MARKET

Bear market is a market phenomenon when the prices of securities and the index is falling for a sustained period of time. Usually, a bear market is declared when the price of a security falls at least 20% from its high price.

BASIS POINT

BASIS POINT

Basis Points or BPs is a unit of measure used to denote changes in yields on bonds or any other rates. One basis point translates into a ratio of 0.01%, 50 basis points translates into a ratio of 0.50% and henceforth.

BULL MARKET

BULL MARKET

A market in which prices of securities are rising or expected to rise.

BULLET

BULLET

A bond with bullet maturity means it has a single maturity date of the principal amount. The interest amount though can be monthly, quarterly, annually as per terms of the bond.

BENCHMARK

BENCHMARK

A bond whose terms are used for comparison with other bonds of similar maturity. For example a 10 year G-sec yield is used as a benchmark for all 10 yr bonds.

BOND

BOND

A Bond is a fixed income instrument issued by either the Government or Corporates to raise money from investors. A bond pays back the prinicpal amount upon maturity and interest as per the stated terms (annually, quarterly, etc.). Bond, Debenture, NCD (Non-Convertible Debenture) mean the same and are used inter changeably. Simply put, its like a loan to the company which can be traded like one trades stocks.

BOND HOLDER

BOND HOLDER

A Bond holder is an investor who has purchased the bond/is currently holding it. 

BOOK BUILDING

BOOK BUILDING

A process undertaken to determine the price of a security before initial public offering is made.