A specialized division within a bank engaged in settling estates, administering trusts and guardianships, and performing various agency services, known for a conservative investment philosophy.
A Banker's Acceptance (BA) is a time draft drawn on and accepted by a bank, commonly used to effect payment for merchandise sold in import-export transactions, and a significant source of financing used in international trade.
A banker's cheque, also known as a bank draft, is a payment instrument issued by a bank on behalf of a payer, which provides a guarantee of the funds because the bank holds the amount before issuing the cheque.
The banker's discount is the discount calculated by a bank when purchasing a bill of exchange before its maturity.
A banker's draft, also referred to as a bank draft, is a payment on behalf of an individual that is guaranteed by the issuing bank.
A banker's order is an instruction issued by a bank customer, directing their bank to transfer a specified amount from their account to another account at regular intervals until the order is cancelled.
A banker's payment involves a bank draft drawn in favor of another bank to settle business between the two banks.
A banker's reference, also known as a status enquiry, is a report on the creditworthiness of an individual supplied by a bank to a third party. Such reports are often used by financial institutions or customers seeking insight into the financial reliability of individuals or entities.
A standardized time measurement convention used in financial computations, where each month is assumed to have 30 days and the year 360 days.
Directives on various aspects of banking practice issued by the EU Parliament and Council of Ministers.
Bankruptcy is the state of an individual or entity unable to pay off their debts. A court-ordered bankruptcy order leads to the liquidation of the bankrupt's assets to repay creditors.
A specialized court established by Congress, pursuant to Article I of the Constitution, to address matters arising in or under a bankruptcy case.
A bankruptcy petition is a document filed with the bankruptcy clerk's office to formally initiate a bankruptcy proceeding. It specifies the bankruptcy chapter under which the debtor seeks relief and contains comprehensive information about the debtor’s financial status, creditors, assets, liabilities, and recent asset transfers.
A banner ad is a rectangular advertisement displayed on a web page, often at the top, containing a hyperlink to the advertiser's website.
In legal contexts, 'Bar' can refer to a procedural barrier preventing relitigation of an issue and the legal profession itself.
A bar chart, also known as a bar diagram, is a graphical representation of statistical data using rectangular bars with lengths proportional to the values they represent.
A bar code is a pattern of wide and narrow bars printed on paper or a similar material that can be read by a computer using a scanner. It is utilized to encode various kinds of data and is most commonly seen in the Universal Product Code (UPC) used at supermarket cash registers.
A bar graph is a type of chart that displays information by representing quantities as rectangular bars of different lengths either vertically or horizontally. Bar graphs are widely used in statistics, finance, business, and other quantitative fields to visualize data distributions and comparisons.
A legal document used to transfer title to property without providing guarantees from the seller on the validity of the title.
A bargain basement is a retail location within a main store, typically situated in the basement, where discounted merchandise is sold. Originally, the purpose was to move unsold merchandise, but the term has been adopted by retailers exclusively dealing in discounted goods.
A bargain hunter can either be a consumer highly sensitive to prices or an investor seeking undervalued stocks with the hope for price appreciation.
The purchase of assets or other goods for substantially less than the fair market value. A bargain purchase can be made when the vendor is in liquidation or is otherwise financially distressed.
A bargain purchase option is a provision in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.
A bargain renewal option in a lease agreement gives the lessee the right to extend the lease term at a rate favorable enough that's considerably below market value.
Bargaining refers to the process of negotiating for better prices, terms, working conditions, or other benefits between two or more parties, typically involving a give-and-take approach.
A bargaining agent, also known as a bargaining representative, is a union or individual certified through a secret ballot process to be the exclusive representative of all employees in a bargaining unit or group.
A Bargaining Unit refers to a group of employees certified by the National Labor Relations Board (NLRB) to be represented by a union or bargaining agent. Legal constraints and guidelines govern the formation of these units.
A barometer is a selective compilation of economic and market data designed to represent larger trends. Common barometers include consumer spending, housing starts, interest rates, and prominent stock market indices like the Dow Jones Industrial Average and Standard & Poor's 500 Stock Index.
A barometer stock is a security whose performance is regarded as an indication of the overall market movement, often signaling broader economic trends. In the USA, such a stock is frequently referred to as a 'bellwether security.'
Barriers to entry refer to the conditions or obstacles that make it difficult for new competitors to enter a particular industry or market. These barriers can be financial, regulatory, technological, or cultural, and they protect established players from new competition.
A barrister is a type of lawyer in common law jurisdictions, predominantly found in England, whose primary function is to represent clients in higher courts of law.
Barter is a method of trading in which goods or services are exchanged directly for other goods or services without the use of money. It is usually considered cumbersome and limits the scope of trade.
The currency used as the basis for an exchange rate, where foreign currency rates are quoted per single unit of the base currency, commonly US dollars.
The base pay rate refers to an employee's standard hourly wage or regular rate of pay, on which overtime and other wage supplements are calculated.
A base period is a particular time in the past used as the yardstick or starting point when measuring economic data. It is usually a year or an average of years, but it can also be a month or any other specified period.
The base rate is the benchmark interest rate set by a nation's central bank, influencing the rates commercial banks charge borrowers and pay to depositors.
Base rent refers to the minimum rent due under a lease that may also include a percentage or participation requirement based on sales revenue or other criteria.
A certain volume of stock, assumed to be constant in that stock levels are not allowed to fall below this level. When the stock is valued, this proportion of the stock is valued at its original cost. This method is not normally acceptable for financial accounting purposes.
Base-Year Analysis involves examining trends in economic data with parameters anchored in a specified year. This method expresses indices like Gross Domestic Product (GDP) in constant dollars to eliminate inflationary effects and provide a more accurate reflection of economic changes over time.
The Basel Accords are three versions, with numerous amendments, of international banking agreements developed by the Basel Committee. They seek to establish a stable international banking system by specifying capital requirements, internal measures of risk assessment, bank supervisory review standards, and market discipline through the disclosure of available capital, risk exposure, and assessments as a measure of the institution's capital adequacy.
The Basel Capital Accords include Basel I, Basel II, and Basel III. These agreements set international banking standards aimed at promoting financial stability through enhanced regulatory frameworks.
BASIC is a high-level programming language that was developed in the mid-1960s to provide computer education to non-science and non-mathematics students. It became the dominant language for early personal computers.
Basic Earnings Per Share (Basic EPS) is a financial metric used to measure a company's profitability on a per-share basis, without considering any dilutive effects from convertible securities or options.
Basic financial instruments are the underlying tools used in financial operations, including currencies, bonds, stocks, and derivatives. These instruments serve as the backbone of financial transactions and investment strategies.
In economic base analysis, the Basic Industry Multiplier (BIM) is the ratio of the total population in a local area to employment in basic industries. These industries attract income from outside the local area, and jobs added in basic industries contribute to local service job creation.
In the UK, the basic rate of income tax is the lower band of income tax rates, currently set at 20%. This rate applies to the first £32,000 of taxable income for the 2016-2017 tax year.
A cost or income standard set in standard costing to form the basis on which other standards are set. It is a foundational metric from which other variances and standards can be derived.
The basic wage rate is the amount of money paid to an operator for a specified period of work, excluding additional payments such as incentive bonuses, shift premiums, overtime, and other premium payments.
Basis is an amount usually representing the taxpayer's cost in acquiring an asset. It is crucial for various tax purposes including computation of gain or loss on the sale or exchange of the asset and depreciation with respect to the asset.
The basis used for the equitable apportionment of costs between several cost centres when direct assignment is not feasible.
The basis upon which personal income or business profits are assessed in the UK for each fiscal year. The specific rules for each income-tax schedule detail the profits or income to be assessed in that year.
The Basis Period is a critical concept in accounting and taxation, referring to the specific period, usually a fiscal year, during which income generated or profits earned are used as the basis for assessing tax liabilities for the following tax year.
A basis point is a unit of measure equal to one hundredth of one percent, used primarily in finance to denote changes in interest rates, bond yields, and other percentages that involves fine margins.
Batch costing is a method of costing in which unit costs are expressed based on the cost of producing a specific batch, particularly useful in scenarios where individual unit costs are extremely low and production units are homogeneous.
Batch Processing is a procedure where a user submits a batch of information for a computer to process as a whole. It contrasts with interactive processing, hence focusing on efficiency and handling large amounts of data without direct user intervention during execution.
Batch processing is a method of production where similar individual units are grouped together as a batch to streamline the production process and improve cost-efficiency. Often used when the goods produced are small or homogeneous, batch processing helps organizations manage resources more effectively.
Batch-level activities refer to tasks or processes that are performed each time a batch of units is produced, regardless of the number of units within that batch. These activities are essential for economies of production, particularly in manufacturing settings.
BAUD is a measurement of the speed of a modem, specifying the number of times per second a communications channel changes the carrier signal sent on the phone line. It is often confused with bits per second (BPS), though they are technically different measurements.
The Bayesian Approach to Decision Making is a methodology that incorporates new information or data into the decision process. It is especially useful when making decisions for which insufficient empirical estimates are available.
The BCG Matrix, also known as the Boston Consulting Group Matrix, is a tool that helps companies prioritize their product portfolio based on market growth and market share. It provides a visual representation to identify which products or business units to invest in, develop, or divest.
The BCG Matrix, also known as the Boston Matrix, is a strategic tool used for analyzing a company's portfolio of business units or products. Created by the Boston Consulting Group in the 1970s, this matrix helps companies identify which of their business units generate cash and which utilize it, aiding in the development of overall business strategy.
A derogatory term used to refer to accountants by highlighting the meticulous nature of their job, often implying a focus on minute details rather than broader perspectives.
A dealer on a stock exchange, currency market, or commodity market who expects prices to fall, often selling securities without owning them in anticipation of repurchasing them at a lower price.
A 'Bear Hug' in corporate takeovers refers to an acquisition offer made by a potential suitor at a price significantly higher than the target company's current market value. If the target company's management resists the offer, it risks violating its fiduciary duty to act in the shareholders' best interests.
A bear market is a prolonged period during which investment prices fall and widespread pessimism causes the negative sentiment to be self-sustaining. A bear market typically describes a condition where security prices fall 20% or more from recent highs.
A bear raid refers to an illegal attempt by investors to manipulate the price of a stock downward by selling large numbers of shares short. Such practices are prohibited under Securities and Exchange Commission (SEC) rules.
A bearer bond, also known as a coupon bond, is a type of debt security that is not registered in the name of the owner. Instead, it is payable to whoever holds it (i.e., the bearer). Bearer bonds come with attached coupons that the bondholder must clip and present for interest payments.
A bearer instrument is a financial instrument that is payable to the holder or bearer, regardless of that person's identity. As a bearer check or bill of exchange does not require endorsement, it is considered a high-risk form of transfer.
A security for which ownership is determined solely by possession of the physical certificate, allowing for anonymous transfer and posing risks for illegal activities like money laundering and tax evasion.
Bed and Breakfasting refers to a tax strategy where a shareholder sells a holding and buys it back the next day to realize a loss for tax purposes. However, legislative changes have rendered this practice obsolete for shares due to stricter time requirements.
A residential community primarily located in the suburbs, often near an employment center, but itself providing few employment opportunities.
The Before-and-After Rule in eminent domain is a practice wherein the property value is appraised both before and after the taking, considering any enhancement or injury resulting from the condemnation.
Before-Tax Cash Flow (BTCF) represents the cash generated by an asset or a business before deducting income tax payments or adding income tax benefits. It's a critical measure for assessing an investment's or business's potential earnings and operational efficiency.
Government rules that attempt to promote domestic industry by raising the cost to consumers of purchasing imported goods.
The term 'Beginning of Year' (BOY) is commonly used in financial analysis and reporting to indicate the start of a fiscal year. In accounting, it acts as a reference point for comparing year-over-year performance and financial statements.
Behavior modification involves the employment of positive or negative reinforcement to alter the actions of an individual or group. It also encompasses changes in personality or attitude based on new information and experiences.
Behavioral accounting is an approach that incorporates psychological and social factors alongside traditional technical aspects in accounting. This multifaceted perspective is essential for understanding the operation of various accounting mechanisms, such as budgetary control systems.
Behavioral finance is the study of the role played by psychological factors in financial decision-making and their effect on overall market outcomes. It examines how individual and group behavior deviates from the rational pursuit of self-interest posited by classical economic theory.
Innovative and flashy, but often unnecessary and confusing, features of a product, such as computer hardware or software. Originally referred to the 'toy boxes' on theater organs of the silent-movie era.
Bellwether is a security or indicator used to predict the direction of a market or sector. Notable examples include IBM in stocks and the 30-year U.S. Treasury Bond in bonds.
A bellwether security is a stock or bond that is widely believed to indicate the potential direction or future trend of the market or sector it represents, often used by investors as a predictive tool.
Informal slang term meaning bankrupt, derived from the posture of a dead fish lying with its belly facing up.
Below Par refers to a financial security, especially a bond, that is trading at a price lower than its face or nominal value.
Denotes entries printed below the horizontal line on a company's profit and loss account, indicating how the profit is distributed or where funds to finance the loss originate. It contrasts with above-the-line entries, which focus on ongoing operational activities.
A below-the-line deduction, also referred to as an itemized deduction, is a tax deduction that taxpayers can claim on their federal income tax returns. These deductions are subtracted from a taxpayer's adjusted gross income (AGI) to determine their taxable income, ultimately reducing the amount of tax owed.
A highway that encircles a metropolitan area and provides access to outlying suburban areas as well as a bypass around the central urban area; also called a loop, perimeter, or circumferential highway.
A benchmarking study compares actual performance to a standard of typical competence, utilizing a standard unit for the basis of comparison, such as the 3-month federal Treasury Bill rate for U.S. interest rates.
Benchmarking is a technique for measuring an organization's products, services, or activities against those of best-performing organizations to identify areas for improvement.
Beneficial interest refers to the right to benefit from assets held in a trust, distinguished from the legal ownership held by the trustee. It pertains to the income or principal of the trust fund, directly influencing the beneficiary.
A beneficial owner is a person who enjoys the benefits of ownership, even though the title is in another name.
A beneficiary is a person or entity who is designated to receive benefits or assets from trusts, wills, insurance policies, or other financial instruments.
An in-depth look at the term 'Benefit,' covering various contexts such as business, insurance, employment, and charitable events. Understand how benefits contribute to organizational profitability, enhance efficiency, support individuals in need, and serve as fringe benefits for employees.
The Benefit Principle is an economic theory proposing that those who benefit from government expenditures, which are financed by taxes, should also be the ones to pay the taxes that finance them.
A benefit-based pension plan is a type of retirement plan where the employer promises a specified monthly benefit on retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.
The evaluation of a proposed activity by determining the value of the anticipated benefits compared to the costs incurred, ensuring a financially attractive decision when benefits exceed costs. It’s essential to also consider non-financial factors and the potential disparities in who benefits and bears the costs.
Non-cash benefits provided to employees from employment, which are subject to UK tax regulations, often reported on form P11D.
Benford's Law describes the expected frequency pattern of the digits in real-life data sets, especially the prevalence of lower digits as the leading digit. This mathematical law is often used in forensic accounting and fraud investigations.
The act of passing on personal property through a last will and testament.
A bequest is a gift made through a will, which dictates the transfer of property or assets from a deceased individual to beneficiaries.
A Best Effort Arrangement is a method used by investment bankers, acting as agents, to sell a new issue to the public without actually buying the securities outright. These bankers have the option to buy the securities, but their primary responsibility is to use their best efforts to sell the issue on behalf of the issuer.
