What Is Best Execution? Best execution is a legal mandate that requires brokers to seek the most favorable options to execute their clients’ orders within the prevailing market environment. Best execution is a significant investor protection requirement that obligates a broker to exercise reasonable care when executing an order to obtain the most advantageous terms
What Was the Best-Interest Contract Exemption (BICE)? The best-interest contract exemption (BICE) allowed fiduciaries to be paid in ways that were otherwise prohibited, such as commissions or revenue sharing. The rule was passed as part of a new, more stringent definition of a fiduciary by the Department of Labor in a ruling that was subsequently vacated in
What Is Beta? Beta (β) is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole (usually the S&P 500). Stocks with betas higher than 1.0 can be interpreted as more volatile than the S&P 500. Beta is used in the capital asset pricing model (CAPM), which
What Is Bats Global Markets? Bats Global Markets was a U.S.-based exchange that listed several different types of investments, including equities, options, and foreign exchange. It was founded in 2005 and was acquired by Cboe Options Exchange (Cboe) in 2017. Prior to being acquired, Bats Global Market was one of the largest U.S. exchanges and well
What Is Betterment Insurance? Betterment insurance is supplemental coverage for additions or modifications made by a lessee to a space they lease. Such policies cover only improvements that increase the value of the property and do not include the structure itself. Betterment insurance policies typically cover improvements made to commercial properties. However, residential tenants could also purchase such a
What Is the Bond Equivalent Yield? In financial terms, the bond equivalent yield (BEY) is a metric that lets investors calculate the annual percentage yield for fixed-come securities, even if they are discounted short-term plays that only pay out on a monthly, quarterly, or semi-annual basis. However, by having BEY figures at their fingertips, investors
What Is BHD (Berhad)? BHD is a suffix for Berhad, which is used in Malaysia to identify a public limited company. Berhad, BHD, or Bhd after a company’s name indicates that it is a Malaysian public limited company (PLC) while the extended suffix Sendirian Berhad (SDN BHD) denotes that it is a private limited company. Key Takeaways Berhad (BHD)
What is Biased Expectations Theory? The biased expectations theory is a theory of the term structure of interest rates. In biased expectations theory forward interest rates are not simply equal to the summation of current market expectations of future rates, but are biased by other factors. It can be contrasted to the pure expectations theory
What Is a Bid Whacker? A bid whacker (or someone who “whacks the bid”) is slang for a trader or investor who sells securities at or below the current bid price. This may be seen as abnormal behavior, as sellers typically aim for a price somewhere in the middle of the bid-ask spread of a
What Is Bid Deduct? Bid deduct refers to when contractors’ bids for a project exclude the cost of providing workers’ compensation, general liability, and excess liability insurance because insurance is already provided by the owner of the project through an owner-controlled insurance program (CIP). The bid deduct methodology will reduce the amount a contractor bids
