Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

INDICATION OF INTEREST (IOI)

When an investor shows interest in new securities. It is nonbinding because the securities are not yet registered. Refer to the defenition of circle.

INSURABLE RISK

A risk that causes loss that can be covered by the premium paid. Refer to uninsurable risk.

JOURNALING

Logging of all datafile updates in database management, simultaneously, real time. The original file, damaged or destroyed, uses this log as an audit trail to reconstruct the database.

JUNK FEES

Lender fees, paid in dollars versus a percentage of the loan total. Described in unfavorable terms.

KAIZEN COSTING

Reducing product costs even if being produced. A process involving effective waste management, continuous product improvement and raw material price reduction. Cost minimization is a strategy in overall product cost reduction.

KEY ESCROW

Copy or copies of a code, password, or secret key protected by a third party for use in an emergency or when the originals) is(are) lost. Escrowed items may be separated to

KEYNESIAN THEORY

British economist John Maynard Keynes established this economic theory. A stable, growing economy requires active government intervention is the concept embodied by the theory.

KINKED YIELD CURVE

When medium term interest rates are higher than low or high. Refer to negative yield curve, yield curve, and positive yield curve.

KNOWLEDGE ECONOMY

Building, evaluating, and trading knowledge is the basis of this economy. Labor costs slowly decrease in importance while dwindling concern occurs over scarcity of resources and economies of scale, traditional economic concepts.

LADDER OPTION

When a buyer locks in gains. Refer to the hatchet option, cliquet option, fixed and floating strike ladder option, or a shout option.

LANDING ACCOUNT

Warehouse keeper issues this document to a recently landed shipment’s consignee as the shipment is stored in the warehouse. The document gives details of the shipment and the date when demurrage charges

LAST

A given security’s most recently executed-transaction’s price.

LATENT MARKET

A potential market with ready consumers identified for a product or service not yet offered. Finding this potential helps a company move towards new products or services with building demand. The first

LAW OF ONE PRICE

Purchasing power doctrine preaching parity where the real purchasing power of different currencies trends to equalize differing inflation rate in the respective countries, forcing a similar price in each country for commodities

LEAD (PB)

Natural element as a heavy metal that endangers life. Proven to cause mental retardation, increased infections and cancer rates. Lead blunts the body’s defense mechanisms, the immune system, and collects in blood,

LEADERSHIP GRID

Tracking two basic leadership attributes: concern for results and concern for people. A graphical tool for evaluating leader behavior along effective leadership styles..

LEASE TO OWN

An agreement allowing the renter to buy the leased item when the lease period expires. Typically, some or all of the lease payment is applied to the purchase. A lease-to-own arrangement usually

LEGAL LEASE

Specifically, a leasehold estate authorized with a set term by a deed .

LEHMAN BROTHERS

Founded in 1850 by Henry Lehman, Emmanuel Lehman and Mayer Lehman. Worldwide financial services firm. Investment and financial services experts. Forced to file bankruptcy during the financial crisis of 2008 as one

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