Slang for one million dollars. Barbell strategy A fixed income strategy in which the maturities of the securities included in the portfolio are concentrated at two extremes. Barefoot Investor A popular Australian radio program focused on teaching young people financial literacy. Barefoot pilgrim A slang term for an unsophisticated investor who has lost everything on the stock market. Not to be confused with Barefoot Investor. Bargain hunter In the context of general equities, purchaser who is extremely selective in the price sought on a transaction. Bargain-purchase-price option Gives the lessee the option to purchase the asset at a price below fair market value when the lease expires. Barometer Economic and market data that represent an overall trend. The Dow Jones Industrial Average is an example of a stock market barometer. BARRA's performance analysis (PERFAN) A method developed by BARRA, a consulting firm in Berkeley, Calif. It is commonly used by institutional investors applying performance attribution analysis to evaluate their money managers' performance. Barrier options Option contracts that remain dormant until a trigger point (the barrier price) is reached, at which point the call or put option is activated, and results either in a long or short options position, or in the automatic exercise of an options position. One example is an up-and-in call. Assume an exercise price of $50 and a barrier price of $53. If the stock stays below $53, the call option cannot be exercised. If the stock price reaches the $53 barrier price, the holder then has a call option on the shares at $50. These are exotic options. Barron's confidence index Index measuring the ratio of the averageyield on 10 top-grade bonds to the average yield on 10 intermediate-grade bonds. The discrepancy between high-rated top-grade bonds and low-rated bond yields establishes a measure that is indicative of investor confidence. Barter The trading/exchange of goods or services without using currency. Base A technical analysis tool. A chart pattern depicting the period when the supply and demand of a certain stock are in relative equilibrium, resulting in a narrow trading range. The merging of the support level and resistance level. Base currency Applies mainly to international equities. Currency in which gains or losses from operating an international portfolio are measured. Base interest rate Related: Benchmark interest rate. Base market value The average market price of a group of securities at a specific time. Used for the purpose of indexing. Base period A particular period of time used for comparative purposes when measuring economic data. Base probability of loss The probability of not achieving a portfolioexpected return. Related: Value at risk. Base rate British equivalent of the US prime rate. Basel Accord Agreement concluded among country representatives in 1988 in Switzerland to develop standardized risk-based capital requirements for banks across countries. Basic balance In a balance of payments, the basic balance is the net balance of the combination of the current account and the capital account. Basic business strategies Key strategies a firm intends to pursue in carrying out its business plan. Basic IRR rule Accept the project if IRR is