The Letter B

Bargain Fishing-when investors buy securities that have been beaten-down just because they are beaten-down.

Bargain Hunting-when investors buy securities that are fundamentally sound and profitable. These are shares that have been overlooked and are trading at historically cheap prices.

BearMarket-a decline of 20% or more from the peak of a major index. A bear market in stocks is usually brought on by the anticipation of declining economic activity, and a bear market in bonds is caused by rising interest rates. The reference to a bear is because of the way a bear approaches a target. When a bear charges, it swipes downward with its claws to try to knock the opponent to the ground.

Beige book-a report on regional economic activity.

Bid price-the buy price for a security.

Big Board-popular term for the New York Stock Exchange.

Big Pharma-street nickname for the large drug companies.

Bond-an obligation made by a corporation or government entity to the buyer of the bond to repay a stated amount of money at a specific rate of interest at a stated date (the maturity date). Check these websites for more specific information: Bureau of the Public Debt , Investing in Bonds & E-Muni.

Bourse-French word for the stock market.

Breadth (Market Breadth)-the percentage of stocks that are participating in the markets movement. This is important because, for example, if the Dow Industrials Average is up 100 points, you would think that overall most of the market is up. However, since the Dow is only 30 stocks it is possible that a large movement in one of the stocks could cause a large portion of this movement. If two thirds of the stocks trading are advancing issues, this is considered Good Breadth.

Bundling-the practice of selling several complementary products in a single discounted package. This seems like a good thing for the consumer but it can force competitors out of the market. This is one of the issues in the antitrust suit against Microsoft.

Buy back-when an investor purchases a stock to cover a short position or when a company will repurchase its own shares on the open market. A company might do this to discourage a take over, increase earnings per shares or to attempt to increase its share price. A company could get the funds for the buyback from cash, sale of assets or borrowing.

Updated 1/13/02