Glossary

A benchmark is a standard, usually a market index, used to compare and evaluate the performance of an investment, fund, or portfolio.

The bid is the highest price buyers are currently willing to pay for an asset, and the ask is the lowest price sellers are willing to accept. The difference between them is the spread, a core trading cost.

A blockchain is a shared digital ledger that records transactions in linked, time-stamped blocks, maintained by a network of computers rather than a single central authority.

A blue-chip stock is a share of a large, well-established company with a long track record of stable operations, reliable earnings, and often consistent dividend payments.

A bond is a loan an investor makes to a government or company in exchange for regular interest payments and the return of the original amount at a set future date.

A bond ETF is an exchange-traded fund that holds a basket of bonds and trades on a stock exchange like a share, giving investors diversified fixed-income exposure in a single instrument.

A bond fund pools money from many investors to buy a diversified portfolio of bonds, paying out interest income while its share price fluctuates with interest rates and credit conditions.

A broker regulator is an authority that oversees how brokerage firms operate, setting rules for licensing, conduct, and the handling of client money.

A broker scam is a fraudulent scheme in which an entity poses as a legitimate brokerage to take investors' money, often using fake platforms, pressure tactics, or false promises of guaranteed returns.

A brokerage account is an investment account you open with a broker to buy, hold, and sell assets such as stocks, ETFs, and bonds.