Investing glossary
Plain-language definitions of the investing terms you meet in filings, in the news and in Finzer.
27 terms, all of them on this page
B
Balance of Payments
The balance of payments tracks all economic transactions between a country and the rest of the world over a period. Learn how it drives currencies, markets, and investment risk.
Balance Sheet
A balance sheet is a financial statement that shows what a company owns, owes, and the equity left over at a specific point in time. Learn how to read it, what drives changes, and how investors actually use it.
Bankruptcy
Bankruptcy is a legal process where an individual or company that can’t meet its financial obligations seeks court protection to restructure or liquidate debts. Learn how it works, what triggers it, and what investors should actually do when bankruptcy risk shows up.
Base Effect
A base effect is when year-over-year growth rates are distorted because the prior-period comparison was unusually high or low. Learn how it skews inflation, earnings, and economic data-and how investors should adjust.
Bear Market
A bear market is a sustained decline of 20% or more in a major market index from recent highs. Learn what causes bear markets, how they unfold, and what smart investors actually do during them.
Bearish Trend
A bearish trend is a sustained period of declining prices marked by lower highs and lower lows. Learn how to spot it early, what causes it, and how smart investors respond.
Benchmark
A benchmark is a standard index or reference used to measure an investment’s performance. Learn how benchmarks work, which ones matter, and how to actually use them to make better investing decisions.
Benchmark Index
A benchmark index is a standardized market index used to measure the performance of a portfolio or investment strategy. Learn how benchmarks work, how to choose the right one, and how investors misuse them.
Best Execution
Best execution is a broker’s obligation to execute client trades at the most favorable terms reasonably available, typically at or better than the NBBO. Learn how it works, what affects it, and how to judge whether your broker is actually delivering it.
Beta
Beta measures how much a stock moves relative to the overall market, with 1.0 matching market volatility. Learn how to use beta for risk control, portfolio construction, and smarter position sizing.
Bid-Ask Spread
The bid-ask spread is the gap between the highest price a buyer will pay and the lowest price a seller will accept for an asset. Learn why it’s a hidden trading cost, what drives it, and how smart investors manage it.
Black Swan Event
A Black Swan Event is a rare, unpredictable shock with extreme market impact that standard risk models fail to anticipate. Learn how they happen, why they matter, and how smart investors prepare for the unthinkable.
Blue Chip
A blue chip stock is a large, established company with a long track record of profits, strong balance sheets, and market leadership. Learn how blue chips work, how investors use them, and when they matter most in a portfolio.
Bond
A bond is a loan you make to a government or company in exchange for fixed interest payments and return of principal at maturity. Learn how bonds work, what drives their prices, and how investors actually use them.
Bond Price
A bond price is the market value at which a bond trades, expressed as a percentage of its face value. Learn what moves bond prices, how to read them, and how smart investors use them.
Bond Prospectus
A bond prospectus is the official legal document that lays out a bond’s terms, risks, and issuer obligations before investors buy it. Learn how to read one, what really matters, and how to use it to avoid costly mistakes.
Bond Yield
A bond yield is the annual return an investor earns from a bond, expressed as a percentage of its price. Learn how yields really work, why they move, and how investors should use them.
Bonds
Bonds are debt securities where investors lend money to a government or company in exchange for fixed interest payments and return of principal at maturity. Learn how bonds work, what drives their prices, and how to use them intelligently in a portfolio.
Book Value
Book value is a company’s net asset value-total assets minus total liabilities-reported on its balance sheet. Learn how investors use it to spot undervalued stocks, avoid value traps, and compare companies across industries.
Breakout
A breakout happens when a stock’s price moves decisively above resistance or below support, usually on higher-than-normal volume. Learn how to spot real breakouts, avoid false moves, and use them in your investing playbook.
Broker
A broker is a licensed intermediary that executes buy and sell orders for investors in financial markets. Learn how brokers work, how they get paid, and how choosing the right one impacts your returns.
Budget Deficit
A budget deficit occurs when a government spends more than it collects in revenue over a given period. Learn what causes deficits, how they affect markets, and what investors should actually watch.
Bull Market
A bull market is a sustained rise in asset prices-typically 20% or more from recent lows-driven by strong economic and earnings momentum. Learn how bull markets form, how long they last, and how smart investors actually navigate them.
Bullish Trend
A bullish trend is a sustained period where asset prices move higher, typically marked by higher highs and higher lows. Learn how to spot one, what causes it, and how smart investors actually trade it.
Business Angel
A business angel is a high-net-worth individual who invests personal capital into early-stage companies in exchange for equity. Learn how angel investing works, why it matters, and how smart investors assess its risks and rewards.
Business Cycle
A business cycle is the recurring pattern of economic expansion and contraction in an economy over time. Learn how each phase affects markets, earnings, and what smart investors do differently at each stage.
Business Cycles
Business cycles are recurring expansions and contractions in economic activity measured by GDP, employment, and output. Learn how they work, what causes them, and how investors can position portfolios across cycles.