Book Value
The value of an asset or liability as reported on a company’s balance sheet. It is calculated as the original cost of the asset minus any accumulated depreciation or amortization.
Bearer Instrument
A financial instrument, such as a bond or check, that is payable to whoever holds it, rather than to a specific person or entity. Bearer instruments are transferable by delivery and do not require endorsement.
Bearer Bond
A bond that is not registered in the name of a specific owner and is payable to whoever holds it. Bearer bonds are negotiable instruments and are typically unsecured.
Basis Point
A unit of measure used in finance to describe changes in interest rates or bond yields. One basis point is equal to 0.01%. For example, if an interest rate increases by 25 basis points, it means it has increased by 0.25%
Bank Guarantee
A promise by a bank to pay a specified amount of money to a beneficiary if the customer fails to fulfill its obligations. Bank guarantees are often used in international trade to ensure payment or performance.
Balance Sheet
A financial statement that shows a company’s assets, liabilities, and shareholders’ equity at a specific point in time. It provides a snapshot of a company’s financial position.
Bailout
Financial assistance provided to a failing company or financial institution to prevent its collapse and stabilize the economy. Bailouts may involve loans, equity investments, or other forms of financial support.