Back-end load: A sales charge or commission paid when an individual sells an investment.

Balanced funds: A mutual fund designed to help preserve the initial principal invested and provide current income and long-term growth by buying a combination of stocks, fixed-income investments and cash equivalents.

Bear market: A prolonged period during which security prices are generally falling, usually by 20% or more. Opposite of bull market.

Beneficiary: The recipient of an inheritance, annuity or life insurance proceeds; or person designated to receive income or principal from a trust.

Beta: A quantitative measure of the volatility of a given stock, mutual fund or portfolio relative to the overall market. A beta above 1 is more volatile than the overall market, while a beta below 1 is less volatile.

Bid: The highest price anyone will pay for a security at a given time.

Bid or sell price: The current price at which a security may be sold.

Blue chip: The common stock of a company known nationally for the quality of its products or services and having a long history of sustained earnings and dividend payments.

Blue Sky laws: State regulations governing the registration and sale of securities and mutual funds, designed to protect investors from fraudulent or unscrupulous actions.

Bond: A debt instrument in which the issuing authority promises to pay the bondholders a specified amount of interest for a specified length of time and repay the principal invested on a given maturity date.

Bond insurance: Insurance purchased by an issuer for either an entire bond issue or specific maturity dates guaranteeing the payment of principal and/or interest to investors.

Bull Market: A prolonged period during which security prices are rising, usually by 20% or more. Opposite of bear market.

Buy: Indicates an investor wants to obtain ownership of a security. Also called buy order.

Buy-sell agreement: An arrangement used by businesses to sell interests of a deceased or disabled business owner to the remaining partners at a predetermined price or using a predetermined formula.