BDC
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Business development company |
|---|---|
| Categories | Business & Finance |
BDC stands for Business development company, a stock market & investing abbreviation.
US closed-end investment company that lends to and invests in small and mid-sized private businesses, a structure Congress created in 1980 to channel capital to such firms. BDCs must distribute at least 90 percent of taxable income, so they offer high dividend yields.
Example: The BDC's portfolio consists mainly of first-lien loans to companies owned by private equity firms.
Usage notes
BDCs can be publicly traded or non-traded, and they are a major part of the fast-growing private credit market. Most elect to be taxed as regulated investment companies (RICs). A 2018 law allowed BDCs to increase leverage by lowering their required asset coverage ratio to 150 percent.
Related abbreviations
More stock market & investing abbreviations
- ASX – Australian Securities Exchange
- ATH – All-time high
- ATL – All-time low
- ATM – At the money
- ATS – Alternative trading system
- BD – Broker-dealer
- bps – Basis points
- BSE – BSE Limited (formerly Bombay Stock Exchange)
- BVPS – Book value per share
- CAC 40 – Cotation Assistée en Continu 40 (continuous assisted quotation 40)
- Cboe – Cboe Global Markets (Chicago Board Options Exchange)
- CBOT – Chicago Board of Trade