Profiting on interest rate differentials. For instance, borrowing money at a relatively low short-term rate and lending it out a higher long-term rates.
Archives
Cash
A special term attached to an equity order that requires the trade to be settled either the same day or the following business day for cash.
Cash & Cash Equivalents
Cash in bank and all securities that can readily be converted to cash within three months or less.
Cash Dividend / Distribution
A dividend/distribution that is paid in cash.
Cash Flow
After tax income minus preferred dividends and general partner distributions plus depreciation, depletion, and amortization (Market Guide definition). See Operating Cash Flow and Free Cash Flow.
Bull Market
A market in which stock prices are rising.
Bull Trap
A false signal which indicates that the price of a stock or index has reversed to an upward trend, but ultimately proves to be false.
Bulletin Board System
Stocks that don’t qualify for NASDAQ listing are traded here or by Pink Sheets. Be careful.
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.