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

Category: Finance Dictionary

TERMINAL EXPECTED RISK EXPOSURE

Expected exposure of a derivative based on an underlying market reference. Refer to average expected, average worstcase, and terminal worstcase exposures.

TIME VALUE

The remaining value of a contract attributed to time. The value declines daily. Refer to theta and time decay.

TRANSLATION RISK

Loss that occurs when a foreign exchange currency is turned into the home countries monetary unit. It is reflected in an equity account. AKA currency translation risk. Refer to transaction risk.

TYING

When an institution offers a client a loan at a low margin in exchange for better business opportunites in the future. This is sometimes illegal. Refer to reverse tying.

UNLIMITED LIABILITY

When personal assets are used to absorb business failure. Refer to piercing the corporate veil.

VERTICAL LAYERING

When reinsurers assume different layers of risk. Some reinsurers will have no loss. The higher the layer the less exposed to risk. Refer to excess layer and horizontal layering.

WHENISSUED (WI) SECURITY

A security announced but not priced. It is informal but legally binding. When settled it trades like any seasoned security. Refer to to be announced and when issued treasury.

YIELD ENHANCEMENT

A strategy used to increase core returns. This is intended to be a low risk move. Refer to arbitrage speculation and hedging.

INCUBATOR

A firm offering a start up seed as venture capital. Also called accelerator

INELASTIC

The proportionate change between variables. Also called elastic or elasticity.

INTEREST COVERAGE

The way a company sees how it can manage its debt. This is also referred to as debt service coverage.

IN-THE-MONEY

When an underlying asset is worth more. Refer to atthemoney, moneyness, or out of the money.

JUMBLE DISPLAY

Single-price for varying products as a retail display. Also known as a clearance table or bin.

JURISDICTIONAL STRIKE

Illegal strike in an organization over a particular group of employees in dispute about the right to represent a existing trade union.

KDE

K Desktop Environment. KDE was a project begun by Matthias Ettrich in 1996. It was developed mainly by European volunteers. It is a Linux-based non-proprietary graphical user interface (GUI). It works with

KEY MONEY

Deposit on a leased property paid by the lessee.

KICKBACK

A bribe for routing a job, contract, or order. Typically comes out of the income generated by the job, contract, or order. Demanded by an official.

KLUGE

Something assembled from whatever was available to ‘make do’, but not built according to design or plan.

KNOWLEDGE WORKER

Data analysts, product developers, planners, programmers, and researchers capturing data to analyze and manipulate into information as a product or service. US management guru Peter Drucker, born in Austria in 1909 popularized

LAFFER CURVE

Conceptual relationship between marginal tax rates and total tax collections in a graphical representation named after US economics professor Arthur Laffer. He proposed that lower taxes encourage greater output and supply, increasing

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.