In order to achieve success in the stock market you must be able to speak the language of the stock market. Please use our supplied glossary of terms to become better acquainted with these terms so that you may gain a better understanding of the market world

Bb

Basis Point
One-hundredth of a percentage point. For example, the difference between 5.25% and 5.50% is 25 basis points.

Basis Point
One-hundredth of a percentage point. For example, the difference between 5.25% and 5.50% is 25 basis points.

Bear Market
A market in which stock prices are falling

Best-Efforts Underwriting
A type of underwriting where the investment firm acts as an agent. The firm agrees to use its best efforts to sell the new issue of securities, but does not guarantee the issuing company that the securities to be issued will be sold.

Beta
A measurement of the relationship between the price of a stock and the movement of the whole market.

Better-Price-Limit Orders
An order with a limit price better than the best price on the opposite side of the market. A better-priced buy order has a limit price higher than the best offering. A better-priced sell order has a limit price lower than the best bid. These are available only at the opening.

Bid
The highest price a buyer is willing to pay for a stock. When combined with the ask price information, it forms the basis of a stock quote.

Bid Size
The aggregate size in board lots of the most recent bid to buy a particular security.

Black-Scholes Model
A mathematical model used to calculate the theoretical price of an option.

Block Trades
Trades greater than or equal to 10,000 shares in size and greater than or equal to $100,000 in value.

Blue Chip Stocks
Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities.

Board Lot
A standard trading unit as defined in UMIR (Universal Market Integrity Rules). The board lot size of a security on Toronto Stock Exchange or TSX Venture Exchange depends on the trading price of the security, as follows: Trading price per unit is less than $0.10 – board lot size is 1,000 units Trading price per unit is $0.10 to $0.99 – board lot size is 500 units Trading price per unit is $1.00 or more – board lot size is 100 units

Bonds
Promissory notes issued by a corporation or government to its lenders, usually with a specified amount of interest for a specified length of time.

Book
An electronic record of all pending buy and sell orders for a particular stock.

Booked Orders
Orders that do not trade immediately upon entry. These orders are also known as outstanding orders.

Bought-Deal Underwriting
A type of underwriting where the brokerage firm acts as principal. The brokerage firm risks its own capital to purchase all of the securities to be issued. If the price of the securities decreases before the brokerage firm has had a chance to resell the securities to its clients, the firm absorbs the loss.

British Columbia International Commercial Arbitration Centre (BCICAC)
An arbitration centre established to resolve business disputes that have not been resolved through normal channels. As part of its services, the centre will accept claims up to $50,000 from clients of participating members of the Investment Dealers Association of Canada (Pacific Division) and TSX Venture Exchange.

British Columbia Securities Commission (BCSC)
The provincial government agency responsible for administering and enforcing the Securities Act and the Commodity Contract Act of British Columbia.

Broker or Brokerage Firm
A securities firm or a registered investment advisor affiliated with a firm. Brokers are the link between investors and the stock market. When acting as a broker for the purchase or sale of listed stock, the investment advisor does not own the securities but acts as an agent for the buyer and seller and charges a commission for these services.

Bull Market
A market in which stock prices are rising.

Business Day
Any day from Monday to Friday, excluding statutory holidays.

Business Trust
A trust that usually generates cash flows from one business or operating company, unlike an investment fund, which generates income from a diversified pool or portfolio. The trust holds debt and equity interests of an operating business. Businesses that exhibit these characteristics may opt for a trust structure over a corporate structure to take advantage of tax efficiency.

Buy-In
If a broker fails to deliver securities sold to another broker on the settlement date, the receiving broker may buy the securities at the current market price of the stock and charge the delivering broker the cost difference of such a purchase

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