Investment Terms You Need to Know - Volume B

‘B

Broker – A broker is a vital cog in the machine that is the world of Investing. A broker is an individual (or occasionally a firm,) whom acts as the ‘middle-man’ between investor and those they are looking to purchase from. It is not uncommon for a broker to also take a commission on the transaction once it is finalised.

Bulk Transfer – When a company or organisation sells most/all of its assets and inventory to another company or organisation, this is known as a Bulk Transfer.

Broker Recommendation – When a broker recommends an investor purchase or sell a specific stock based up on several factors including the investor’s portfolio and investment goals. Broker Recommendations fall into specific categories including: Strong Buy, Buy, Strong Sell and Sell.

Buyer’s Remorse – Buyer’s remorse refers to an individual’s feelings of anxiety, nervousness and self-doubt immediately following a purchase. While Buyer’s Remorse can take place anywhere, within the financial industry, the term often refers to investors who are experiencing these emotions after making significant purchases such as stocks or investing in real estate.

Business Model – A Business Model is a written document that outlines the operations of a company or organisation and includes information such as the functions of the business, the assets the organisation owns and the revenues and expenses that the company produces. A Business Model can provide potential investors invaluable information pertaining to the stability of a business or organisation.

Bottom Line – The term Bottom Line is a common one and is sometimes also referred to as Net Income. An organisation or business’ Bottom Line is calculated by taking the amount that was made in Gross Sales and then subtracting expenses such as interest, depreciation and taxes.

Blue Collar Trader – In the Investing world, a Blue Collar Trader is also sometimes referred to as a ‘Casual Investor.’
A Blue Collar Trader is an investor who does not rely on investing as a primary source of income, often investing on their own without the assistance of a broker. A Blue Collar Trader avoids risky investment methods.

Blind Bid – An extremely risky method of investment, a Blind Bid occurs when investors offer to purchase an assortment of stocks devoid of prior knowledge as to what stocks will be included in their purchase. This investment method obviously carries large amounts of risks as the stocks you purchase may turn out to be worthless.