What are Buyers or Sellers “On Balance?” Buyers or sellers “on balance” describes an order imbalance in a market at a specific point of time. The phrase also describes traders whose activity over a period of time trends predominately toward buying or selling, rather than a balance between the two. Key Takeaways Being a buyer
What Is Buy Here, Pay Here (BHPH)? The term “Buy Here, Pay Here (BHPH)” refers to auto dealerships in which the financing for the vehicles purchased is done in-house. These types of dealerships are typically involved in the sale of heavily-used cars, and they tend to cater to customers with relatively poor credit ratings. Key
What Is a Buying Hedge? A buying hedge is a transaction a company engaged in manufacturing or production will undertake to hedge against possible increases in the price of the actual materials underlying a futures contract. This strategy is also known by many names including a long hedge, input hedge, purchaser’s hedge, and purchasing hedge. The managers of
What Is Buying on Margin? Buying on margin occurs when an investor buys an asset by borrowing the balance from a bank or broker. Buying on margin refers to the initial payment made to the broker for the asset—for example, 10% down and 90% financed. The investor uses the marginable securities in their broker account
What Is Buy-In Management Buyout (BIMBO)? A Buy-In Management BuyOut (BIMBO) is a form of a leveraged buyout (LBO) that incorporates characteristics of both a management buyout (MBO) along with a management buy-in (MBI). A BIMBO occurs when existing management along with outside managers decide to buy out a company. The existing management represents the
What Is a Buy-Minus? A buy-minus order is a type of order in which a client instructs a broker to purchase a stock at a figure below the current market price. Buy-minus orders are used when a trader is hoping to acquire a stock when its price declines briefly. Traders can further restrict buy-minus orders
What Is Buyout? A buyout is the acquisition of a controlling interest in a company and is used synonymously with the term acquisition. If the stake is bought by the firm’s management, it is known as a management buyout and if high levels of debt are used to fund the buyout, it is called a
What Is a Buyout Settlement Clause? A buyout settlement clause is a contractual provision often found in liability insurance contracts. This clause provides the policyholder with the right to reject a settlement offer made by the insurer. If the insured party exercises this right, the insurance company buys out the policy. The policyholder can use
What Is the Buy-Side? The financial institutions of a free-market economy include a segment called the buy-side: firms that purchase investment securities. These include insurance firms, mutual funds, hedge funds, and pension funds, that buy securities for their own accounts or for investors with the goal of generating a return. Opposite of the buy-side professional
What is a Buy Stop Order A buy stop order instructs a broker to purchase a security when it reaches a pre-specified price. Once the price hits that level, the buy stop becomes either a limit or a market order, fillable at the next available price. This type of stop order can apply to stocks
