Financial Dictionary

This dictionary contains:
24549
financial terms

Back stop




Back stop

The act of providing last-resort support or security in a securities offering for the unsubscribed portion of shares.

RELATED TERMS
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Support
An effective lower bound on prices supported because of many willing buyers at that price level.

Security
Piece of paper that proves ownership of stocks, bonds, and other investments.

Unsubscribed
Newly issued securities that have not seen much interest, or subscriptions, from investors ahead of the issue date or have not been offered by brokerages.

Shares
Certificates or book entries representing ownership in a corporation or similar entity.



SIMILAR TERMS
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Back door listing
A strategy of going public used by a company that fails to meet the criteria for listing on a stock exchange.

Back end load
A charge imposed when investors redeem (sell) shares in mutual funds, which has the effect of discouraging withdrawals.

Back fee
The premium charged upon the second term or portion of a compound option.

Back months
The available futures contracts for a particular commodity that possess expirations or delivery dates furthest into the future.

Back office
Brokerage house administrative operations that support the trading of stocks and other securities.

Back on the shelf
In the context of general equities, permanently canceled order/interest in a stock by a customer.

Back taxes
Taxes that have not been paid on the due date or were underreported either by accident or by intention on a past tax return.

Back to back financing
An intercompany loan channeled through a bank.

Back to back inheritance tax plan
The combination of a life assurance policy and an annuity on the same life the purpose of which is to reduce inheritance tax.

Back to back loan
A situation where an investment organization, such as an investment trust, deposits sterling with a UK bank which subsequently arranges with a foreign associate bank to lend the equivalent amount of foreign currency to the investment organization.

Back up
1) When bond yields rise and prices fall, the market is said to back up. 2) An investor who swaps out of one security into another of shorter current maturity is said to back up.

Back up the truck
The act of a large buyer scooping up huge quantities of a stock.

Back-end load fund
A mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%.

Back-end ratio
A ratio that indicates what portion of a person's monthly income goes toward paying debts. It is calculated as an individual's total monthly debt, divided by gross monthly income and expressed as a percentage.

BACKCOCK AND BROWN - PARTLY PAID SHARES
BACKCOCK AND BROWN - PARTLY PAID SHARES is a large Australian company.. Their Australian Stock Exchange (ASX) code is BC1.

Backdating
Dating any document by a date earlier than the one on which the document was originally drawn up.

Backed in
In the context of general equities, to describe the result of unanticipated events that allow for a purchase at a discount or a sale at a premium.

Backing away
The act of a market maker failing to honor a posted bid or ask even though the price and quantity are valid.

Backlog
The total value of sales orders waiting to be fulfilled.

Backpricing
A pricing method used in specific futures contracts whereby the price of the commodity to be delivered is priced by the purchaser at some future date after entering into the position.

Backspread
A delta-neutral spread composed of more long options than short options on the same underlying instrument.

Backtesting
Uses a large historical price database to evaluate a trading system's profitability.

Backup line
A commercial paper issuer's bank line of credit covering maturing notes if, for some reason, selling new notes to cover the maturing notes is not possible.

Backup line of credit
A bank assurance of funds obtained by an issuer of commercial paper to protect the CP investor from default.

Backwardation
In the futures market the price of a contract for future delivery of a commodity usually trades above the spot price because the owner of the contract is deemed to have the advantage of holding cash until the time of delivery and is assumed to be able to earn interest on that cash.



PREVIOUS AND NEXT TERMS
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Back end load
A charge imposed when investors redeem (sell) shares in mutual funds, which has the effect of discouraging withdrawals.

Back fee
The premium charged upon the second term or portion of a compound option.

Back months
The available futures contracts for a particular commodity that possess expirations or delivery dates furthest into the future.

Back office
Brokerage house administrative operations that support the trading of stocks and other securities.

Back on the shelf
In the context of general equities, permanently canceled order/interest in a stock by a customer.

Back stop

Back taxes
Taxes that have not been paid on the due date or were underreported either by accident or by intention on a past tax return.

Back to back financing
An intercompany loan channeled through a bank.

Back to back inheritance tax plan
The combination of a life assurance policy and an annuity on the same life the purpose of which is to reduce inheritance tax.

Back to back loan
A situation where an investment organization, such as an investment trust, deposits sterling with a UK bank which subsequently arranges with a foreign associate bank to lend the equivalent amount of foreign currency to the investment organization.

Back up
1) When bond yields rise and prices fall, the market is said to back up. 2) An investor who swaps out of one security into another of shorter current maturity is said to back up.

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This dictionary contains 24549 terms.







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