guide to lease buy invest

Back-End Load
Refers to charges which are imposed upon the redemption or liquidation of an investment position. Often these charges are on a sliding scale. Sometimes, these charges are viewed as early withdrawal penalties. They are called back-end because they occur at the end of the investment process.

Back-End Load | Details |

Bailout
Action taken by others to help a company, organization or country with its finances. It is an analogy to "bailing out" a sinking boat. There is considerable debate as to whether the process is a handout or subsidy versus a helping hand.

Bailout | Details |

Balanced Funds
Mutual funds that invest in both stocks and bonds. The stocks can be both common and preferred. A primary objective is to balance income and growth.

Balanced Funds | Details |

Bond Anticipation Note
A short term security issued by a municipality. The security will be paid or redeemed by funds from a new issue. It is a cash management tool.

Bond Anticipation Note | Details |

Bank Guarantee Letter
A document by which an approved bank certifies that an put option writer or grantor has sufficient funds at the bank to cover the write. The funds are equal to the exercised value of the put. This value is equal to the strike price multiplied by the number of shares. It effectively reflects an outright purchase of the underlying security at the strike level

Bank Guarantee Letter | Details |

Baby bond
Bonds whose par values are less than $1,000 are often described as baby bonds, or, in the case of municipal bonds, as mini-munis. Small companies that may not be able to attract institutional investors, such as banks and mutual fund companies, may offer smaller-denomination bonds to raise cash from individual investors. Some municipalities also use baby bonds to foster involvement in government activities by making it possible for more people to invest.

Baby bond | Details |

Balance of trade
The difference between the value of a country's imports and exports during a specific period of time is called the balance of trade. If a country exports more than it imports, it has a surplus, or favorable balance of trade. A trade deficit, or unfavorable balance, occurs when a country imports more than it exports.

Balance of trade | Details |

Bankruptcy
When you file a petition of bankruptcy, you acknowledge that you are insolvent, or unable to pay your debts. If you file for Chapter 7, or liquidation bankruptcy, most of your assets are sold to repay the debts. A court-appointed trustee oversees settling creditor claims, which are usually not repaid in full. However, some debts are not reduced by a declaration of bankruptcy, including past due federal income taxes, alimony, and higher-education loans.

Bankruptcy | Details |

Beneficiary
A beneficiary is the person or organization who receives assets that are held in your name in a retirement plan, or are paid on your behalf by an insurance company, after your death. If you have established a trust, the beneficiary you name receives the assets of the trust.

Beneficiary | Details |

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