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Terms starting with B

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Corporate Actions, Dividends & Governance

Board of Directors

The body elected by shareholders to direct a company's management and safeguard shareholder interests.

Test: directors are appointed by shareholders and owe fiduciary duties to the company under the Companies Act qualitative
Indicators & Oscillators

Bollinger Band Width

The distance between the upper and lower Bollinger Bands, expressed relative to the middle band.

Band Width = (Upper Band - Lower Band) / Middle Band x 100 %
Indicators & Oscillators

Bollinger Bands

A moving average with bands plotted a set number of standard deviations above and below it.

Middle Band = 20-period SMA; Upper Band = Middle + 2 x Standard Deviation; Lower Band = Middle - 2 x Standard Deviation
Indian Market, Regulation & Taxation

Bombay Stock Exchange

Asia's oldest stock exchange, founded in 1875, whose benchmark index is the Sensex.

Test: the security is admitted to trading on the BSE, which additionally assigns a numeric scrip code to each listed security qualitative
Bonds & Fixed Income

Bond

A tradable debt instrument under which the issuer borrows a sum and agrees to pay interest and repay the principal at maturity.

Bond Price = Present Value of all Coupon Payments + Present Value of the Principal Repayment
Bonds & Fixed Income

Bond Covenant

A condition in a debt agreement restricting the borrower's actions or requiring it to maintain stated financial ratios.

Test: the agreement specifies obligations whose breach constitutes an event of default, whether or not a payment is missed qualitative
Bonds & Fixed Income

Bond Market

The market in which debt securities are issued and traded.

Test: the instrument traded represents a debt obligation rather than an ownership interest qualitative
Bonds & Fixed Income

Bond Price

The present value of a bond's remaining cash flows, discounted at the yield the market requires.

Price = Sum of (Coupon / (1 + Yield) raised to t) + Face Value / (1 + Yield) raised to n
Bonds & Fixed Income

Bond Yield

The return a bond generates, expressed as an annual percentage of the price paid for it.

Yield varies by measure: Current Yield = Annual Coupon / Market Price; Yield to Maturity accounts for all cash flows and the redemption amount %
Corporate Actions, Dividends & Governance

Bonus Issue

The issue of additional free shares to existing shareholders, funded by capitalising reserves.

New Share Count = Old Count x (1 + Bonus Ratio); Adjusted Price = Old Price / (1 + Bonus Ratio) shares
Financial Statements & Accounting

Book Value

The accounting value of a company's equity, equal to total assets less total liabilities.

Book Value = Total Assets - Total Liabilities; Tangible Book Value = Book Value - Goodwill - Intangible Assets ₹ crore
Fundamental Analysis & Valuation

Book Value per Share

Shareholders' equity divided by the number of shares outstanding — the accounting value attaching to one share.

Book Value per Share = Shareholders' Equity Attributable to Owners / Shares Outstanding
Orders, Execution & Market Structure

Bracket Order

A three-part intraday order that places an entry together with a linked profit target and stop-loss, cancelling one when the other fills.

Bracket = Entry Order + Target Limit Order + Stop-Loss Order, with target and stop mutually cancelling qualitative
Technical Analysis & Chart Patterns

Breakdown

A move of price below a defined support level or the lower boundary of a range.

Test: price closes below the defined level, conventionally by a stated margin or on above-average volume qualitative
Technical Analysis & Chart Patterns

Breakout

A move of price above a defined resistance level or the upper boundary of a range.

Test: price closes above the defined level, conventionally by a stated margin or on above-average volume qualitative
Technical Analysis & Chart Patterns

Broadening Formation

A pattern of successively higher highs and lower lows, so the range widens over time.

Test: each swing high exceeds the previous high and each swing low falls below the previous low qualitative
Market Basics & Instruments

Broker

A SEBI-registered intermediary that routes client orders to an exchange and holds the client's trading account.

Test: the firm holds a SEBI registration as a stock broker and is admitted as a trading member of an exchange qualitative
Market Basics & Instruments

Brokerage

The fee a broker charges for executing a trade, levied either as a flat amount per order or as a percentage of turnover.

Brokerage = Turnover x Percentage Rate, or a flat fee per executed order, whichever the broker's schedule specifies
Economy, Macro & Market Cycles

Bubble

A period in which asset prices rise far above any defensible estimate of value, sustained by expectations of further rises.

Test: prices are justified primarily by the expectation of selling higher rather than by the asset's cash flows qualitative
Orders, Execution & Market Structure

Bulk Deal

A trade or set of trades by one client in a single security exceeding a stated percentage of its listed shares, which must be disclosed.

Test: total quantity traded by one client in a security on one day exceeds 0.5% of the number of shares listed %
Derivatives, Futures & Options

Bull Call Spread

Buying a call at one strike and writing a call at a higher strike with the same expiry, capping both cost and gain.

Net Debit = Lower Strike Premium - Higher Strike Premium; Maximum Gain = (Strike Difference - Net Debit) x Lot Size
Economy, Macro & Market Cycles

Bull Market

A sustained period of rising prices, conventionally marked by a rise of 20% or more from a low.

Test: the index has risen 20% or more from its prior trough, without an intervening 20% decline %
Indicators & Oscillators

Bullish Divergence

A condition in which price makes a lower low while an oscillator makes a higher low.

Test: current price low < previous price low, while current indicator low > previous indicator low qualitative
Technical Analysis & Chart Patterns

Bullish Engulfing

A two-candle formation in which a rising candle's body completely covers the preceding falling candle's body.

Test: previous Close < previous Open; current Open <= previous Close and current Close >= previous Open qualitative