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Buy-back
Another term for a repo.
Buydowns
Mortgages in which monthly payments consist of principal and interest. During the early part of the loan
positions of these payments are provided by a third party to reduce the borrowers monthly payments.
Buyers/sellers on balance
Used for listed equity securities. Indicates that at a given point in time (usually before the opening of a
stock/market or at expiration time), there are more buyers/sellers in the marketplace, usually with market
orders. See: imblance of orders.
Buy in
To cover, offset or close out a short position. Related: evening up, liquidation.
Buying the glossary
Purchasing the stocks in the S&P 500 in the same proportion as the glossary to achieve the same return.
Buy limit order
A conditional trading order that indicates a security may be purchased only at the designated price or lower.
Related: Sell limit order.
Buy minus order
Used in the context of general equities. Rare market or limit order to buy a stated amount of a stock
provided that the price to be obtained is not higher than the last sale if the last sale was a minus or zero-
minus tick, and is not higher than the last sale minus the minimum fractional change in the stock if the last
sale was a plus or zero-plus tick. (if limit, then the buy cannot occur above the limit, regardless of tick.)
Buy on close
To buy at the end of the trading session at a price within the closing range.
Buy on margin
A transaction in which an investor borrows to buy additional shares, using the shares themselves as
collateral.
Buy on opening
To buy at the beginning of a trading session at a price within the opening range.
Buyout
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is done
with borrowed money.
Buy-side analyst
A financial analyst employed by a non-brokerage firm, typically one of the larger money management firms
that purchase securities on their own accounts.
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