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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Black Scholes


It sounds like something to do with shoe fashion ("Black Scholes are just all the rage in Paris this year!") but it's actually a math formula and a system for coming up with the price for the value of stock options. Developed in the 1970s, it involves a lot of complex equations... that you don't need to know.