Balance sheet
Part of a company’s annual report and accounts. It lists everything the company owns and owes.
Basis point
Also known as a pip, this is one hundredth of one per cent (0.01%). Even tiny increases or decreases in interest rates can make a massive difference when dealing in chunks of several million at a time.
Bear market
A term for the stock market when share prices are falling consistently over a period time. The opposite of a ‘bear’ is a ‘bull’ market.
Bid/offer spread
If you want to buy an investment, you pay the offer price. If you want to sell, you receive the (lower) bid price. The difference between the two is known as the spread.
Bonds
Lower to medium risk loans to the government or companies that pay you a fixed rate of interest.