Rather than simply acting as an agent, an investment bank or other underwriters directly purchase securities from the issuer, usually at a discount to the market price, and then sells them to investors.
Archives
Blue Chip Stocks
Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities.
Blue Chips
Large, stabile companies.
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
Book
An electronic record of all pending buy and sell orders for a particular stock.
Black Scholes Option Pricing Model
A model used to estimate the price of an option.
Black-Scholes Model
A mathematical model used to calculate the theoretical price of an option.
Block Trade
A single purchase or sale of a stock involving 10,000 or more shares.
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.
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.