Bull: An investor who believes that a certain market, share or industry will go up. This kind of investors are optimists and they believe that the market is going to go develop into a upward direction. Their target is to make profit of this market trend. Bulls are exactly the opposite of the bears with their spirit on the market.
Bull market: A market situation, in which the share prices are going up or they are expected to go up. In this scenario the investors are optimists and therefore the number of the buyers prevails which leads to a prices increase. There is no market that can be constantly bull market, therefore always after a period of bull market with prices going up, comes the bears market with prices going down.
Bear market: A situation on the market, in which the stock prices are going down or they are expected to go down. Bear market is also called the market in which the investors are pessimistic about its development. In such markets prevail buyers who push the prices downwards.
Bear: An investor who believes that certain stocks or markets are going down. Such investors are pessimists and usually they are trying to make profit out of a falling market.
Blue chip: A jargon, used for companies which are very stable in their sector. Usually the blue chips are characterized by high levels of income and profit and their activity is less dependent on the economy cycling. Traditionally blue chip companies are included in the leading world stock market indexes and are highly preferred by the investors.
Black night: A company which directs a hostile takeover offer towards another company. The term is related to the bad characters in the fairy-tails, who want to kidnap the princess.
Balance sheet: An accounting document, prepared at a certain moment. It indicates the balance of the led accounts as the active accounts are being written on the left or on the top and the passive accounts – on the right or at the bottom. The total balance of the assets is equal the total balance of the liabilities.
Balanced inflation: An inflation in which the increase of the prices is balanced and proportionate and it is accompanied by an increase in the nominal interest rate while keeping the real at the same level. The economy can successfully accommodate to the balanced inflation.
Barter: Exchanging of goods or services without the mediation of money.
Buffer stocks: Forming of international funds for purchase and preserving of primary materials in accordance with the statute of the International good agreements. The purpose of these funds is to stabilize the goods’ prices and subsequently to make the producing countries’ export incomes more stable.
Budget deficit: A budget state, at which the expenses are greater than the income.
Budget surplus: A budget state, at which the income is greater than the expenses.
Bank deposit: A money amount kept by the client in a special deposit bank account; part of the bank’s liabilities.
Balance of capital account: The financial assets deals, conducted between foreign and local for a certain country economic agents for a certain period of time.
Balance of international payments: A register which reflects the sources and the levels of the amounts, received or sent, through international transactions for a certain period of time, usually one year.
Break-even point: A production volume, in which the total income is equal to the total costs and the economic profit is equal to zero.
Balance of trade: A part of the balance of payments in which the operations of trading with goods is being presented.
Bankruptcy: A legal procedure for settlement of a physical person or company’s liabilities, who are not capable of fulfilling their obligations to the creditors.
Bookkeeping; The recording of the financial information and documentation. We also like to call it the basic of the accounting service.
Budget: This is a microeconomic concept which represents an estimation of the future revenue and expenses over a certain period of time.
Book value: The value with which the asset is represented in the balance sheet. This value equals the difference between the reported value and the value of the calculated amortization.
Bank system in Bulgaria: A system of banks which includes the Bulgarian National Bank, the trading banks and the bank branches, as well as, everyone who has a license for bank deals which allows opening bank accounts of third parties and executing intermediary operations on payments.
Business plan: A financial plan for development of a certain entity which express its strategy, main business objectives and its mission. It is based on a preliminary analysis of the internal and the external environment (the strong and the weak sides, the opportunities and the threads for development) of the entity.
Broker: An independent agent who buys and sells stocks and bonds on his behalf but on account of the client.
Barriers to entry: Access restrictions organized by market’s monopolists which prevent other sellers from entering the market.
Bank balance: This is the amount of money in a bank account on a particular date as recorded by a financial institution on a bank statement.
Bank reconciliation: This is the verification of a bank statement balance and the depositor’s checkbook balance.
Budget period: The period in which the approved budget is in effect. In Bulgaria the budget period starts on 1st of January and ends on 31st of December of the current year– the budget period matches the calendar year.
Bond: A documental commitment for disbursement of cash. The bond is a security with fixed income, issued by a certain government, corporation or company.
Boom: A peak stage of the economic activity, a turning moment of the business cycle. The boom is the opposite conditions of the recession and it is characterized with high levels of final production, low level of unemployment, speculative investments and multiple short strikes.
Basic commodity: A good which directly or indirectly participates in the production of all goods.
Basic industry: An industry which exports its production in other regions and by doing this it becomes the main determinant for its own region’s prosperity.
Business organization: The concrete legal agreement for ownership of a company. The basic and most frequently used legal forms in Bulgaria are sole trader (ET), general partnerships and companies (OOD) and corporations (AD).