Stock market terms starting with B

Board of Directors Corporate Actions, Dividends & Governance qualitative 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

Bollinger Band Width Indicators & Oscillators % 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

Bollinger Bands Indicators & Oscillators ₹ 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

Bombay Stock Exchange Indian Market, Regulation & Taxation qualitative 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

Bond Bonds & Fixed Income ₹ 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

Bond Covenant Bonds & Fixed Income qualitative 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

Bond Market Bonds & Fixed Income qualitative The market in which debt securities are issued and traded. Test: the instrument traded represents a debt obligation rather than an ownership interest

Bond Price Bonds & Fixed Income ₹ 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

Bond Yield Bonds & Fixed Income % 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

Bonus Issue Corporate Actions, Dividends & Governance shares 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)

Book Value Financial Statements & Accounting ₹ crore 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

Book Value per Share Fundamental Analysis & Valuation ₹ 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

Bracket Order Orders, Execution & Market Structure qualitative 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

Breakdown Technical Analysis & Chart Patterns qualitative 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

Breakout Technical Analysis & Chart Patterns qualitative 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

Broadening Formation Technical Analysis & Chart Patterns qualitative 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

Broker Market Basics & Instruments qualitative 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

Brokerage Market Basics & Instruments ₹ 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

Bubble Economy, Macro & Market Cycles qualitative 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

Bulk Deal Orders, Execution & Market Structure % 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

Bull Call Spread Derivatives, Futures & Options ₹ 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

Bull Market Economy, Macro & Market Cycles % 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

Bullish Divergence Indicators & Oscillators qualitative 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

Bullish Engulfing Technical Analysis & Chart Patterns qualitative 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

Terms starting with B