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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Black Scholes

Definition:

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.