Stock Market For Beginners Terms With B

Stock Glossary - B

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Broker

A broker is an individual or firm that executes 'buy' and 'sell' orders for an investor in exchange for a fee or commission. A mortgage broker, for example, buys and sells mortgages. An insurance broker, for example, arranges for the selling of insurance products to clients.

The term brokerage firm usually refers to a stock brokerage firm. Brokers frequently provide recommendations to their clients about what to purchase and sell, but the client ultimately makes the decision to buy or sell.

Bid Price

The specific at which a buyer wants to buy the shares is called Bid Price.

Beta

By calculating beta, you can measure the stock's volatility with respect to the broader market (index).
If a stock "PQR" has a beta of 2.5, it indicates that for every 1 point change in the market, stock "PQR" moves 2.5 points and vice versa. Stocks with a high beta have a higher risk but a higher return, whereas low beta stocks have a lower risk but a lower return.

Breakout

When a stock or commodity exits an area pattern.

Block deal

A block deal is a transaction in which a large number of shares are exchanged.

Breadth of the Market

The number of securities listed on the market in which there is regular trading.

Break

A security or index that has experienced a sudden and dramatic drop.

Book Price

The value of a company after all of its assets have been used to pay off all of its liabilities.
Book Price = Assets - Liabilities

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