Barclays Stockbrokers Glossary
Glossary B


Bank Automated Clearing System. We use this to send funds to, and claim money from your chosen bank account.
Balance Sheet
A financial statement showing a company's assets, liabilities, and shareholders' equity on a given date, often at the end of the financial year.
The amount of cash and stock held on your portfolio.
Bank of England
The UK's central bank that decides on monetary policies and interest rates.
Barclays Stockbrokers Price Improver®
A service that automatically links direct with major market makers to instantaneously identify the most competitive price available to us, giving you the chance to beat the price displayed by the London Stock Exchange.
A purchase or sale, also known as a transaction, deal or trade.
Bargain Tax Date
The date on which the deal was transacted.
Bargain Number
A unique reference number given to a deal.
Base Rate
The rate at which the Bank of England lends to other banks in the UK.
A portfolio consisting of more than one security that may or may not replicate an index. For example, a share or equity basket is one that contains shares in more than one company.
Bear Market
A falling market, or one that is expected to fall - opposite to a bull market.
Bear Document
Documents stating that the person in physical possession of them (the bearer) is the owner.
See ‘index’.
Beneficial Owner
The true owner of a security. The registered holder of the shares may act as nominee for the actual shareholder.
Benefits offered by companies to their shareholders over and above the dividend payment, often requiring a minimum shareholding in the company. Also known as ‘perks’.
Best Execution
A firm's commitment to obtain the best price for the relevant order - ‘dealing at best’.
An attempt by one company to take over another.
Bid Price
The price at which a market maker is prepared to buy shares - opposite of the ask price.
Bid/Offer Price
The difference between the buying and selling price of your units. It includes an allowance for the initial charge, if there is one, plus the cost of making the investment.
Board of Directors
Individuals legally responsible for running a company.
Bond Issue
A bond issue raises money for a company in the form of long term debt. The company makes regular payments of interest to bondholders with repayment of the principal on maturity. The price of bonds can go up and down.
Bonds (or fixed interest securities)
Bonds are effectively loans made by governments or corporations to fund spending or raise capital. They are issued for a specified redemption value at a fixed date in the future and provide the holder with regular interest payments until that time. The value of a bond will generally depend upon the outlook for inflation and interest rates, as well as the underlying security of the issuer. Bonds issued by UK Government are generally regarded as very low risk and so are often known as ‘gilt edged’ investments (gilts). Bonds issued by corporations may be less secure and so the issuer may have to pay a higher rate of interest to attract investor's capital.
Bond Fund
A fund investing primarily in bonds/fixed interest securities.
Book Cost
Original cost of the stock on the date of purchase or transaction.
The intermediary agent between a market maker and an investor, who charges a commission for services provided.
Commission charged by the broker.
Combining many orders in one company's shares together into one deal. Useful when individual orders are below the minimum dealing size. Also known as aggregation.
Bull Market
A rising market, or one that is expected to rise - opposite of bear market.  Hence the expression a ‘bullish market’.

Bundled Share Class
Sometimes called ‘dirty’ funds, this is when the fee that the Fund Manager earns and the trail commission paid to the platform or service provider, e.g. Barclays Stockbrokers, are ‘bundled’ together in the Annual Management Charge (AMC). The AMC is paid to the Fund Manager who, in turn, pays the trail commission to the platform.
Buy Price
Price at which you buy shares.

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