Bear

One who expects a general depreciation in the value of securities or commodities or in a particular security or commodity traded on an exchange or over -the - counter.

Bear Market

A general decline in prices of securities or commodities in a stock or commodity market.

Bearer Security

A security which does not carry (indicate) the name of the owner in the books of the issuer or on the certificate. Any one in possession of it (bearer) is, therefore, presumed to be the owner.

Beneficial Owner

Real owner of a security who may, for convenience or safety, register the security in the name of a nominee such as a bank, trustee or portfolio manager.

Best Effort Underwriting

An underwriting agreement in which the underwriter has no obligation to purchase the securities from the issuer but merely uses his ‘best efforts" to market and distribute the securities. All unsold securities are subsequently returned to the issuer. An underwriter may prefer this type of arrangement when the issuer is considered unseasoned.

Bid

The maximum price investors are prepared to pay for a security on the stock exchange at a given point in time.

Block Holding

Large holdings of the shares of a company by an investor usually by an institutional investor or corporate body.

Block Trading

Trading in large quantities of a security. The size of transactions regarded as ';block'; is usually determined by a stock exchange and varies from one exchange to another exchange.

Blue Chip

Companies which are widely known for good financial performance, product acceptance, high-quality management and regular dividend payment. Owing to these features, blue chips securities are usually in high demand.

Bond

Interest-bearing securities (i.e. debt securities) issued by corporate entities and governments. However, in Nigeria, Federal Government long-dated instruments are generally not called bonds but stock.

Bonus Issues

Shares distributed free to shareholders out of a company's reserve in proportion to the number of shares held, e.g. shareholders could receive one new share for every two held. Such shares add to the shareholder's holdings as well as the company's outstanding shares (paid-up capital) but does not generate additional fund for the company. It is also called share dividend because it is a portion of post tax profit that is declared by a company and distributed to shareholder in form of shares in proportion to the number of shares already held.

Book Entry System

A system which eliminates the issuance of certificates to evidence ownership of securities but in which changes are effected by mere entries usually in a computer.

Book Value

The value of an asset as shown in a company';s balance sheet. The book value usually differs, sometimes considerably, from the market value which is the current price consumers/investors are willing to pay for an asset.

Bridging Loan

A short-term credit facility to an individual, corporate body or government as an interim measure to meet planned expenditure needs while expecting a medium to long-term fund. 35 Broker See Stockbroker.

Broker Amount

An odd amount, such as sixty-nine shares which is not a normal market quantity. (see odd lot)

Broker/Dealer

A financial intermediary who combines the functions of a stock- broker and a securities dealer.

Brokerage Commission

Fee charged by a stockbroker for services rendered in the course of buying and selling securities on behalf of a client.

Bull

One who expects a general rise in the value of securities or commodities or in a particular security or commodity.

Bull Market

Stock or commodity market witnessing a general rise in price.