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Balance Transfer
The process of transferring a balance from one account to another account.

Basis Point
One basis point is 0.01 percent of a bond's yield. Basis points also are used for interest rates. An interest rate of 4 percent is 50 basis points greater than an interest rate of 3.5 percent.

Beneficiary
Person to whom the proceeds of a life policy are payable when the insured dies. The various types of beneficiaries include:

• Primary beneficiaries - Those first entitled to proceeds
• Secondary beneficiaries - Those entitled to proceeds if no primary beneficiary is living when the insured dies
• Tertiary beneficiaries - Those entitled to proceeds if no primary or secondary beneficiaries are alive when the insured dies.

Bond
Bonds are debt and are issued for a period of more than one year. The U.S. government, local governments, water districts, companies, and many other types of institutions sell bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principal amount of the loan at a specified time. Interest-bearing bonds pay interest periodically.

Bond Funds
Mutual funds that invest in bonds issued by municipalities, corporations, and the U.S. government and its agencies. Bond mutual funds do not mature and are not guaranteed, although some of the individual bonds they invest in may be.

Book Value
A company's book value is total assets minus intangible assets and liabilities such as debt. A company's book value might be more or less than the market value of the company.

Business Continuation Plan
An arrangement between business owners that provides that the shares owned by any one of them who dies shall be sold to and purchased by the other co-owners or by the business.