What Is Backwardation? Backwardation is when the current price, or spot price, of an underlying asset is higher than prices trading in the futures market. Key Takeaways Backwardation is when the current price of an underlying asset is higher than prices trading in the futures market.Backwardation can occur as a result of a higher demand
What Is Backward Induction? Backward induction in game theory is an iterative process of reasoning backward in time, from the end of a problem or situation, to solve finite extensive form and sequential games, and infer a sequence of optimal actions. Backward Induction Explained Backward induction has been used to solve games since John von
What Is Backward Integration? Backward integration is a form of vertical integration in which a company expands its role to fulfill tasks formerly completed by businesses up the supply chain. In other words, backward integration is when a company buys another company that supplies the products or services needed for production. For example, a company
What Is a Bad Check? A bad check refers to a check that cannot be negotiated because it is drawn on a nonexistent account or has insufficient funds. Writing a bad check, also known as a hot check, is illegal. Banks normally charge a fee to anyone who writes a bad check unintentionally. The punishment
What Is a Bad Debt Expense? A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems. Companies that extend credit to their customers report bad debts as an allowance for doubtful
What Is Bad Debt Recovery? Bad debt recovery is a payment received for a debt that was written off and considered uncollectible. The receivable may come in the form of a loan, credit line, or any other accounts receivable. Because it generally generates a loss when it is written off, bad debt recovery usually produces
What Is Badwill? Badwill, also known as negative goodwill, occurs when a company purchases an asset or another company at less than its net fair market value. This usually happens when the outlook for the company being acquired is particularly bleak. Key Takeaways Badwill, also known as negative goodwill, occurs when a company or asset
WHAT IS Bagging the Street? Bagging the street is a term that refers to an investing strategy that chases profit immediately prior to the execution of large-volume trades. Key Takeaways Bagging the street is a strategy an investor may choose to employ when they see a large block trade take place. Some in the industry see this
What Is a Bail Bond? A bail bond is an agreement by a criminal defendant to appear for trial or pay a sum of money set by the court. The bail bond is co-signed by a bail bondsman, who charges the defendant a fee in return for guaranteeing the payment. The bail bond is a
What is Bailee’s Customer Insurance? Bailee’s customer insurance protects businesses against damage, destruction, or loss of customer property while it is in their possession. A bailee may be any person or business who has been given temporary custody of someone else’s property. A dry cleaner, a repair shop, or a parking garage may be a
