What Is the Bjerksund-Stensland Model? The Bjerksund-Stensland model is a closed-form option pricing model used to calculate the price of an American option. The Bjerksund-Stensland model competes with the Black-Scholes model, though the Black-Scholes model is specifically designed to price European options. Key Takeaways The Bjerksund-Stensland model is a closed-form option pricing model used to
What Is in the Black? The expression “in the black” is used to refer to a company’s profitability and current financial health. A company is said to be in the black if it is profitable or, more specifically, if the company produces positive earnings after accounting for all expenses. The term has roots in accounting history
What Is Blackboard Trading? Blackboard trading refers to an outdated practice where exchange trading relied upon handwritten bid and offer prices on blackboards. Key Takeaways Blackboard trading is an old-school way of presenting bid and ask prices, written on a blackboard.The technology of the telegraph slowly replaced the use of blackboards.Today’s quotes are priced electronically
What Is a Black Box Model? In science, computing, and engineering, a black box is a device, system, or object which produces useful information without revealing any information about its internal workings. The explanations for its conclusions remain opaque or “black.” Financial analysts, hedge fund managers, and investors may use software that is based on
What Is Black Box Accounting? Black box accounting is the deliberate use of complex bookkeeping methodologies to make interpreting financial statements challenging and time-consuming. This approach is more likely to be adopted by companies seeking to hide information that they do not want investors to readily see, such as large amounts of debt, which could negatively affect
What Is Black Box Car Insurance? Black box car insurance, also known as telematics insurance, is a type of auto insurance that uses technology to track and record a policyholder’s driving behavior. The goal is to base the driver’s insurance premiums on how much they drive and how safe (or risky) they are behind the
What Is Black Friday? Black Friday refers to the day after the U.S. Thanksgiving holiday, which has also traditionally been a holiday itself for many employees. It is typically a day full of special shopping deals and big discounts and is considered the beginning of the holiday shopping season. The sales made on Black Friday
What Is a Black Knight? A black knight is a company that makes an unwelcome, hostile takeover bid. Management of the target company often doesn’t want to sell to a black knight company because they typically have sinister goals. As a result, black knight companies attempt to bypass the board of directors of a company
What Was the Black Liquor Tax Credit? The so-called black liquor tax credit was a tax loophole in the Alternative Fuel Mixture Credit (AFMC) that was exploited by some companies in the forest-products industry beginning in 2005. The federal tax credit was intended to encourage companies to use biofuels by rewarding them for mixing them
What Is a Blacklist? The term blacklist refers to a list of people, organizations, or countries that are shunned or excluded by others because they are alleged to have engaged in unacceptable or unethical behavior or activities. A blacklist is considered retaliatory as it is intended to create financial hardship for those named on the
