Meaning BASIS: The price an investor pays for a security plus any out-of-pocket expenses. It is used to determine capital gains or losses for tax purposes when the stock is sold. Also, for a futures contract, the difference between the cash price and the futures price observed in the market
More terms such as Basis in Dictionary B.
- Definition Buydowns:
- Examples monthly payments consist of principal and interest. During the early part of the loan, portions of these payments are provided by a third party to reduce the borrower's monthly payments basis definition.
- Definition Bond Covenant:
- Examples A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions basis explain.
- Definition Busted Convertible:
- Examples income equivalent. Mainly applies to convertible securities. Convertible bond selling essentially as a straight bond. Assuming the issuer is money good, or will continue to meet credit obligations basis what is.
- Definition Butterfly Spread:
- Examples derivative products. Complex option strategy that involves selling two calls and buying two calls on the same or different markets, with several maturity dates. One of the options has a higher basis meaning.
- Definition Bid Wanted:
- Examples Used in the context of general equities. Announcement that a holder of securities wants to sell and will entertain bids basis abbreviation.
