B/C date
Book close date.
Balance sheet
A statement of assets, liabilities and owners’ equity at a specific date. It also called statement of financial position or statement of assets and liabilities.
Basis risk
The risk that movements in the price of a futures contract do not correlate exactly with movements in the price of the underlying financial instrument or commodity.
Bear ELI
Bear Equity Linked Instrument
Bear market
When share prices are falling quite sharply and experts expect further falls.
BESS
Brokers’ Electronic Support Services
Beta
A measure of how changes in a share price correlating to overall movements in the share market as a whole.
BFI
Brokers’ Fidelity Insurance Scheme
Bid and Ask
Collectively called the “quote”, the bid refers to the highest price a buyer is willing to pay for a stock, while the asked is the lowest price a seller will accept.
BIS
Bank for International Settlements
Blue chip
Shares, usually highly valued, in a major company known for its ability to make profits in good times or in bad, and with reduced risk or default.
BOC
Bank of China
Bond
A tradable debt security, usually issued by a government or semi-government body to raise money. Holders of the bond have lent money for which they receive a fixed rate of interest over a set period of time. The bond is repaid with interest on the predetermined maturity date. Bonds can be traded on the share market.
Bonus shares/bonus issue
Additional shares issued by the company to existing shareholders for free, usually in a pre-determined ratio to the number of shares already held.
Book value
The net amount shown in the books or in the accounts for any asset, liability or owners’ equity item. In the case of a fixed asset, it is equal to the cost or revalued amount of the asset less accumulated depreciation. Also called carrying value. The book value of a firm is its total net assets, i.e. the excess of total assets over total liabilities.
B-share
B-shares are issued by mainland Chinese companies, traded in foreign currencies and listed in mainland Chinese stock exchanges. B shares carry a face value denominated in Renminbi. The B Share Market was launched in 1992 and was restricted to foreign investors before February 19, 2001. B share market has been opened to Chinese investors since February 19, 2001.
BSS
Broker Supplied System
BTF
Block Trade Facility; Block Trading Facility
Bull ELI
Bull Equity Linked Instrument
Bull market
It is when share prices generally are rising.
Buyback
A corporation’s repurchase of stock or bonds it has issued. Reasons for doing so include putting unused cash to use, raising earnings per share, increasing internal control of the company, and obtaining stock for employee stock option plans or pension plans. Here, also called corporate repurchase.