Glossary of Terms


Balanced Fund

An investment portfolio that spreads its holdings over a range of high- and low-risk asset classes. A median balanced fund return is often used as a benchmark for superannuation funds to compare their investment performance.

Basis Point

The measurement of change in the value of an investment, equal to 1/100th of one per cent.

Bank Transfer

A transfer of funds within a superannuation fund from one bank account to another. These transfers are recorded in Mclowd by clicking the BANK TRANSFER button on the BANK tab. See 8.3 BANKING: BANK TRANSFERS  in the Mclowd User Manual.

Bear Market

A market in which prices decline sharply in response to broad pessimism about economic conditions. The opposite of a bull market.


A performance measure used to compare investments.


The person (or persons) a member has nominated to receive their superannuation benefits in the event of death. If the recipient is a dependant of the deceased (a spouse or former spouse, child under 18, financially dependent child under 25, disabled child, or person with whom the deceased had a financially interdependent relationship) , the death benefit can be paid as a lump sum or income stream. Otherwise, the benefit must be paid as a lump sum. The income stream can be new or a continuation of an existing income stream. If the recipient is not a dependant of the deceased, the death benefit must be paid as a lump sum.

Note that depending on the beneficiary’s relationship to the deceased member, taxes may apply on the transfer of benefits. Tax does not apply on the transfer of benefits to a spouse, former spouse, a child under 18 years of age, or a person with whom the deceased had interdependency relationship.


The amount of a member’s entitlement or share of fund assets or, in the event of the member’s death, the amount to which other beneficiaries are entitled. Other than in cases of death or disablement, most benefits are only payable on retirement, and are subject to preservation rules. Lump sum benefits may be paid to members whose accounts are still in accumulation mode if specific ”Conditions of Release” are satisfied.

Binding death benefit nomination

A legally binding nomination that, if valid at the time of death, directs the fund Trustee(s) how to pay a member’s benefit in the event of death. A binding nomination gives Trustee(s) no discretion whatever in the allocation of benefits after death.

Blue Chip

A term describing shares of a company that is known for excellent management and a strong financial structure. The term has become a generic one used to refer to quality stocks.


A fixed interest debt security issued by corporations, governments or their agencies, in return for cash from lenders or investors.

Bonus Share

In bonus share issues, companies give free shares to current shareholders based on the number of shares that the shareholder currently owns.

Bonus share issues increase the total number of shares on issue, but do not change the value of the company. Therefore, the value of each share reduces, but the total value of an individual’s or entity’s shareholding does not change and the percentage holding of each shareholder also remains unchanged. (Example: If you currently own 200 $4.00 shares, constituting 1% of ownership in a company, the company has 20,000 shares on issue and is worth a total of $80,000. If you are granted 50 free shares in a bonus share issue, the company will have 25,000 shares on issue and the share value will reduce to $3.20. Your total holding will still be valued at $800.)

Refer to Section 4.5.3 ASSETS: CORPORATE ACTION: BONUS SHARE in the Mclowd User Manual.

Book Value

The price paid for a security, as opposed to its current worth or market value.

Books Closing Date

The date a share registry is closed off after the declaration of a dividend so that the amount to be paid to each shareholder can be determined.


A fee charged by a broker for executing of a transaction, such as buying or selling shares. Brokerage may be a fixed fee or a percentage of the total value of the transaction.

Bull Market

A market in which prices rise in light of widespread optimism about economic conditions

Business Activity Statement (BAS)

A statement required to be lodged with the ATO at the end of specific periods by registered businesses (including superannuation funds) declaring GST receipts and payments and PAYG obligations and various other transactions that have specific tax implications. For instructions on entering BAS information to Mclowd, please refer to Section 9.5 of the User Manual (including sub-sections) and also to Section 9.5 ACCOUNT MAINTENANCE: JOURNAL ENTRIES – WORKING EXAMPLES.

This section provides several working examples illustrating the method of recording GST and processing BAS returns.

Buy back

The purchase by a company of its outstanding shares, reducing the number of its shares on the open market. Companies buy back shares to increase the value of shares still available by reducing the supply of them, or to eliminate any threats by shareholders who may be looking for a controlling stake.

Buy Sell Differential

The difference between the buying and selling price of a stock.




about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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