Financial Terms and Definitions » B http://terms.speakstocks.com Just another WordPress weblog Mon, 11 Oct 2010 04:41:46 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Book To Market Ratio http://terms.speakstocks.com/book-to-market-ratio/ http://terms.speakstocks.com/book-to-market-ratio/#comments Fri, 12 Feb 2010 22:32:52 +0000 ashivapu http://terms.speakstocks.com/?p=367
  • P/E Ratio
  • Current Ratio
  • Debt/Equity Ratio
    • ]]>     A stock’s book value divided by its market value.

    Book value is calculated from the company’s balance sheet, while market value is based on the price of its stock.

    A ratio above 1 indicates a potentially undervalued stock, while a ratio below 1 indicates a potentially overvalued stock. Technology companies and other companies in industries which do not have a lot of physical assets tend to have low book to market ratios.

    Related posts:

    1. P/E Ratio
    2. Current Ratio
    3. Debt/Equity Ratio

    ]]>     http://terms.speakstocks.com/book-to-market-ratio/feed/ 0     Back-to-Back Loans http://terms.speakstocks.com/back-to-back-loans/ http://terms.speakstocks.com/back-to-back-loans/#comments Fri, 08 Jan 2010 06:42:58 +0000 ashivapu http://terms.speakstocks.com/?p=357 See Parallel Loan

    No related posts.

    ]]>     http://terms.speakstocks.com/back-to-back-loans/feed/ 0     Block Trade http://terms.speakstocks.com/block-trade/ http://terms.speakstocks.com/block-trade/#comments Fri, 11 Dec 2009 19:52:06 +0000 ashivapu http://terms.speakstocks.com/?p=338
  • Liquidity
  • Junk Bond
  • Market Capitalization
    • ]]>     A large amount of securities being traded, typically at least 10,000 shares of stock or $200,000 in bonds.

    Normally, only institutional investors undertake such large trades. Block trades can affect the market price of the security, depending on the liquidity of the market.

    Related posts:

    1. Liquidity
    2. Junk Bond
    3. Market Capitalization

    ]]>     http://terms.speakstocks.com/block-trade/feed/ 0     Basis Swap http://terms.speakstocks.com/basis-swap/ http://terms.speakstocks.com/basis-swap/#comments Wed, 09 Dec 2009 19:48:16 +0000 ashivapu http://terms.speakstocks.com/?p=334
  • Total return swap
  • Interest Rates
  • Federal Funds Rate
    • ]]>     A specific type of interest rate swap, where the interest rates exchanged are based on different money markets or currencies.

    Related posts:

    1. Total return swap
    2. Interest Rates
    3. Federal Funds Rate

    ]]>     http://terms.speakstocks.com/basis-swap/feed/ 0     Best of Breed http://terms.speakstocks.com/best-of-breed/ http://terms.speakstocks.com/best-of-breed/#comments Mon, 12 Oct 2009 18:24:32 +0000 ashivapu http://terms.speakstocks.com/?p=305
  • Hedge Fund
  • Earnings
  • Principal-Agent relationship
    • ]]>     Refers to the most profitable, stable, and/or respected company within an industry.

    Investors normally use best of breeds when finding a stock to invest within a particular industry. “Why choose second best, when you can buy the best?”

    Related posts:

    1. Hedge Fund
    2. Earnings
    3. Principal-Agent relationship

    ]]>     http://terms.speakstocks.com/best-of-breed/feed/ 1     Buyout http://terms.speakstocks.com/buyout/ http://terms.speakstocks.com/buyout/#comments Wed, 07 Oct 2009 19:13:59 +0000 ashivapu http://terms.speakstocks.com/?p=300
  • Initial Public Offering (IPO)
  • Investment Bank
  • Mergers And Acquisitions (M&A)
    • ]]>     A buyout refers to when a company takes over all or part of another company. See mergers and acquisitions.

    If takeover target is public, this usually results in a rise in their stock price.

    Related posts:

    1. Initial Public Offering (IPO)
    2. Investment Bank
    3. Mergers And Acquisitions (M&A)

    ]]>     http://terms.speakstocks.com/buyout/feed/ 0     Balance Sheet http://terms.speakstocks.com/balance-sheet/ http://terms.speakstocks.com/balance-sheet/#comments Sat, 03 Oct 2009 23:35:49 +0000 ashivapu http://terms.speakstocks.com/?p=286
  • Debt/Equity Ratio
  • Current Ratio
    • ]]>     A financial statement that summarizes a company’s assets, liabilities, and shareholder equity for a specific point in time.

    Related posts:

    1. Debt/Equity Ratio
    2. Current Ratio

    ]]>     http://terms.speakstocks.com/balance-sheet/feed/ 0     Bond http://terms.speakstocks.com/bond/ http://terms.speakstocks.com/bond/#comments Sat, 03 Oct 2009 22:17:59 +0000 ashivapu http://terms.speakstocks.com/?p=240
  • Vendor Financing
  • Federal Funds Rate
  • Interest Rates
    • ]]>     A debt investment in which the investor loans money to an entity that will borrow the funds and agree to payback the loan at a fixed interest rate.

    Related posts:

    1. Vendor Financing
    2. Federal Funds Rate
    3. Interest Rates

    ]]>     http://terms.speakstocks.com/bond/feed/ 0     Bid-Ask Spread http://terms.speakstocks.com/bid-ask-spread/ http://terms.speakstocks.com/bid-ask-spread/#comments Sat, 03 Oct 2009 19:28:30 +0000 ashivapu http://terms.speakstocks.com/?p=217
  • Capital Gain
  • Liquidity
  • Ask
    • ]]>     The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it.

    A high bid-ask spread usually implies the security has a low liquidity.

    Example, if the bid price is $30 and the ask price is $31 then the “bid-ask spread” is $1.

    Related posts:

    1. Capital Gain
    2. Liquidity
    3. Ask

    ]]>     http://terms.speakstocks.com/bid-ask-spread/feed/ 0     Bid http://terms.speakstocks.com/bid/ http://terms.speakstocks.com/bid/#comments Sat, 03 Oct 2009 19:25:20 +0000 ashivapu http://terms.speakstocks.com/?p=213
  • Bid-Ask Spread
  • Quote
  • Ask
    • ]]>     The price a buyer is willing to offer to buy a security.

    Also see bid-ask spread, ask.

    Related posts:

    1. Bid-Ask Spread
    2. Quote
    3. Ask

    ]]>     http://terms.speakstocks.com/bid/feed/ 0