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bear and bull markets
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A bear market is one in which prices are low or declining; a bull market is one in which prices are high or rising.
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bear market
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See bear and bull markets
.
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beneficial owner
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A person who benefits from ownership of a security or mutual fund. Shares or title may be held by a bank or broker for safety and convenience, or in "street name" to expedite transactions, but the real owner is the beneficial owner. (See street name
.)
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best ask
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The lowest quoted offer of all competing Market Makers to sell a particular stock at any given time. (See Market Maker
.)
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best bid
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The highest quoted bid of all competing Market Makers to buy a particular stock at any given time. (See Market Maker
, bid price
.)
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best-efforts underwriting
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An investment bank, acting as an agent, agrees to do its best to sell an issue to the public, but does not make an outright purchase of the securities. (See underwriter
.)
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best-execution requirement
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The obligation of Market Makers, broker-dealers, and others to execute customer orders at the best price available at the time the trade is entered. (See Market Maker
.)
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beta
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A statistical measure of a stock's volatility compared with the overall market. A beta of less than 1 indicates lower risk than the market; a beta of more than 1 indicates higher risk than the market. (See volatility
.)
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bid price (buy price)
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The quoted bid at which a Market Maker is willing to buy a stock. (See Market Maker
, best bid
.)
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bid/ask spread
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The difference between the price at which a Market Maker is willing to buy a security (bid), and the price at which the firm is willing to sell it (ask). The spread narrows or widens according to the supply and demand for the security being traded. (See inside quote
, spread
.)
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block trade
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A purchase or sale of a large quantity of stock, generally 10,000 shares or more.
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blue-sky laws
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State laws that require issuers of securities to register their offerings with the state before they can be sold to its residents. Most blue-sky laws include provisions relating to fraudulent activities and the licensing of people selling securities. Nasdaq National Market securities, subject to higher qualifications standards, are exempted from registration requirements under most states' blue-sky laws as are those listed on exchanges.
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Board of Governors
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The controlling body of the Financial Industry Regulatory Authority, Inc.
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bond
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A long-term promissory note in which the issuer agrees to pay the owner the amount of the face value on a future date and to pay interest at a specified rate at regular intervals.
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book manager or syndicate manager
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See syndicate manager
.
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branch office
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Any location identified by any means to the public or customers as a location at which a FINRA member conducts investment banking or securities business.
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breakpoint
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The investment level in a mutual fund at which an investor becomes eligible for a discount on the front-end sales charge or load. Typically, there are several breakpoints, and if you invest more and reach each of these thresholds, the greater the reduction in the sales load.
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broker
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An individual or firm who acts as an intermediary between a buyer and seller, usually charging a commission. (See dealer
.)
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broker-dealer
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FINRA firms that act as securities dealers or brokers, or perform both functions. (See broker
, dealer
.)
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bull market
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See bear and bull markets.
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buy price
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See bid price.
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buy-side trader
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An individual, such as a pension or mutual fund portfolio manager, who effects trades for an institutional investor. (See sell-side trader
.)
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by-laws
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See NASD By-Laws.
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