EconoTerms B

Balanced budget
     Something the federal government usually doesn't have, this is when you spend the same amount of money that you take in. Although the federal government is infamous for its budget deficit (see below), many local governments do have a balanced budget.

Bear market
      Unlike its counterpart, the bull market (see below), a bear market is not a good thing. It's a slow, stagnant market where prices are generally declining (but not necessarily quickly), and one where a change in this condition isn't expected any time soon.

Blue chip
      Blue chip stock is stock that is from a large company that consistently makes money and is very stable. This is safe stock, stock that you can count on to make you money over time. It may not make as much money as quickly as other stocks, but it's also less volatile and highly unlikely to drop in value.

Budget deficit
       A budget deficit is what happens when you spend more money than you have. The federal government is often criticized for its huge deficit, but in reality budget deficits aren't as bad as they sound. Businesses constantly borrow money and invest in capital that will eventually lead to more profits they are running a deficit by borrowing. The government issues "government securities" to finance its investments, thus borrowing money from the public in order to do things for the public.

Bull market
       A bull market is a stock market in which prices are rising, the economy is in good shape, and people are generally happy.

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