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Brokerage: Glossary B
Bid Price: The highest price anyone has declared that he wants to pay for a security at a given time. Blue Sky Laws: State securities laws designed to protect investors which require sellers of new stock issues to register their offerings and provide financial details on each offering. The term is said to have originated from a judge who claimed a that a new stock offering had as much value as a patch of blue sky. Board of Directors: A group of individuals that are elected by the shareholders of a corporation and empowered to carry out certain tasks spelled out in the corporation's charter. These powers include appointing executive management, issuing additional shares and declaring dividends. In most public companies, the board will usually consist of both inside and outside directors. The inside directors have a significant fiduciary interest in the growth and well-being of the company. Outside directors may have a small stake in the company but are generally members for their business experience and contacts. In the case of an IPO, there may not be outside directors until near or immediately following the IPO. Book Running Manager: Another name for the managing underwriter. The book running manager's name will generally appear first in the list of underwriters at the bottom of the cover page. Branch Office: Any location identified by any means to the public as a location in which a securities firm conducts securities business. Broker: (1) An individual or a firm that charges a fee or commission for executing buy and sell orders submitted by another individual or firm. (2) The role of a brokerage firm when it acts as an agent for a customer and charges the customer for its services. Broker-Dealer: A securities firm that is acting as either a broker and/or a dealer. Most securities firms act in both capacities. Buying Power: The dollar value of additional marginable securities a customer may purchase against the existing marginable securities in the account. See the explanation of margin for more complete information on using margin leverage in your investing.
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