Baker Plan

Baker Plan

Baker Plan

A plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor countries (the Baker 15) would undertake growth-oriented structural reforms, to be supported by increased financing from the World Bank and continued lending from commercial banks.

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Backwardation

Backwardation

Backwardation

A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This situation may occur in when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango.

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Back-up

Back-up

Back-up

(1) When bond yields and prices fall, the market is said to back-up. (2) When an investor swaps out of one security into another of shorter current maturity he is said to back up.

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Back-to-back loan

Back-to-back loan

Back-to-back loan

A loan in which two companies in separate countries borrow each other’s currency for a specific time period and repay the other’s currency at an agreed upon maturity.

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Back-end loan fund

Back-end loan fund

Back-end loan fund

A mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. Some back-end load funds impose a full commission if the shares are redeemed within a designated time, such as one year. The commission decreases the longer the investor holds the shares. The formal name for the back-end load is the contingent deferred sales charge, or CDSC.

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Back office

Back office

Back office

Brokerage house clerical operations that support, but do not include, the trading of stocks and other securities. Includes all written confirmation and settlement of trades, record keeping and regulatory compliance.

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Back fee

Back fee

Back fee

The fee paid on the extension date if the buyer wishes to continue the option.

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