What is a BAX Contract? A BAX contract is a short-term investment instrument that tracks the nominal value of a Canadian bankers’ acceptance (BA). The specific BA behind the contract has a nominal value of C$1 million and a maturity of three months. They were first launched in 1988 by the Montreal Exchange and has since gained traction
What Is Bayes’ Theorem? Bayes’ Theorem, named after 18th-century British mathematician Thomas Bayes, is a mathematical formula for determining conditional probability. Conditional probability is the likelihood of an outcome occurring, based on a previous outcome having occurred in similar circumstances. Bayes’ theorem provides a way to revise existing predictions or theories (update probabilities) given new or additional
What Is Bay Street? Bay Street lies at the heart of Toronto’s downtown business district and is often used as a catchword for Canada’s financial industry, just as Wall Street has come to be a shorthand for the U.S. financial services industry. Key Takeaways Bay Street is a street in Toronto’s downtown business district and
What Is a BCG Growth-Share Matrix? The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in. The matrix plots a company’s offerings in a four-square matrix, with
What Is a B/C Loan? A B/C loan is a loan to low credit quality borrowers and borrowers with minimal credit history. This type of financing, which includes personal consumer loans and mortgages, is typically issued by alternative lenders charging high-interest rates and fees. They offer a second tier of loan eligibility to subprime or
What Is the Benefit-Cost Ratio (BRC)? The benefit-cost ratio (BCR) is a ratio used in a cost-benefit analysis to summarize the overall relationship between the relative costs and benefits of a proposed project. BCR can be expressed in monetary or qualitative terms. If a project has a BCR greater than 1.0, the project is expected
What Is Barrels Per Day (B/D)? Barrels per day (B/D) is a measure of oil output, represented by the number of barrels of oil produced in a single day. For example, you might hear “country ABC has the potential to produce five million barrels per day.” The abbreviation “bbl/d” can also be used to represent
What Is a Business Development Company (BDC)? A business development company (BDC) is an organization that invests in small- and medium-sized companies as well as distressed companies. A BDC helps these firms grow in the initial stages of their development. With distressed businesses, the BDC helps the companies regain sound financial footing. Similar to closed-end
What Is a Bear? A bear is an investor who believes that a particular security, or the broader market is headed downward and may attempt to profit from a decline in stock prices. Bears are typically pessimistic about the state of a given market or underlying economy. For example, if an investor were bearish on the
What Is a Bear Fund? A bear fund is a mutual fund that investors use to provide higher returns amid market downturns. Bear funds can be actively managed or designed to follow an index. In the example of an index bear fund, the fund tracks the inverse of the index. Bear funds tend to be
