Page 17 - PRIAA Glossary

BIOMASS ENERGY
Energy produced by the combustion of, or indirectly by the biogasification of, plants, vegetation or agricultural waste, such as rice husks.
BLACK-SCHOLES MODEL
A mathematical model used to determine the price of European put or call options. The inputs to a Black-Scholes model include the strike price of the option contract, current price of the underlying, time to maturity, volatility and the level of interest rates.
BLOCK TRADE
1) A single trade transacted by an asset manager, which may then be allocated to a number of different funds or portfolios managed by that asset manager. See also “Allocation”. 2) An off-exchange trade that is privately negotiated with quantities at or exceeding exchange minimums. These trades are executed away from open outcry or electronic platforms
to avoid price changes within the market at or exceeding exchange minimums.
BLUE CHIP STOCK
A stock from a well-known, large and financially stable company, which usually pays dividends.
BOND
Essentially a loan to a company, municipality or national government, over a set period of time, which pays interest on a regular basis in the form of a coupon. The US government, for example, offers 90-day Treasury bills and 30-year government bonds. The interest rate on the bond is determined by two risk factors: the credit quality of the issuing entity and the duration of time before maturity.
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