Bad Bank
A term created to describe a separate entity taking over troubled assets from banks. Bad banks may be run by banks themselves (and still consolidated in the balance sheet but without the Tier 1 capital requirements) or externally, for example by multiple banks together or by the government. The purpose is to separate normal 'sound' operations from legacy assets containing above-normal risks.
Balance Sheet
The status portion of a company's accounts. It shows the situation regarding assets and liabilities at a specific point in time. In contrary to the income statement, which covers a certain period (typically a quarter or a year) and shows activities, the balance sheet shows the status at the end of a period. The balance sheet of the last period always creates the base for the next period, e.g. its contents are perpetual and continuous over time.
Baltic Dry Index
An index reflecting the price to ship bulk dry goods (for example commodities like grain, iron ore, coal etc). It is based on actual rates paid for four categories of ships and published daily.
Bankruptcy
Bankruptcy - please also explain bankruptcy protection
Basel II
Basel II
Black Monday
October 19, 1987, resulting in a steep decline of stock markets around the world. On that day alone, the Dow Jones lost 22.6%, its steepest one-day loss in history.
Bond
Bond
Book Value
Book Value
Bubble
A bubble in economy is often used as a term describing an exaggeration in the valuation of certain assets, such as stocks, real estate, commodities, etc., where prices paid (perceived value) rise much faster than those for other assets. Often, a bubble is widely recognized only once it bursts, leaving people who entered too late with tremendous losses.