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

Category: Finance Dictionary

LONG DISTANCE CALL

Two or more central offices are typically involved in this type of telephone call.

LONG TERM LIABILITY

A year or more in the future, either from the balance sheet date or today, this obligation is due in goods or services. Disclosing its long-term liabilities with their interest rates, other

LOSING THE POINTS

A decrease on the profit return results in this condition as the current value of the investment is less that the bid.

LOSS FINANCING

Risk management techniques used to prevent loss and increase profit.

LOSS PAYABLE CLAUSE

Payment authorization clause. Covers insured payout to insured entities who are not the insured. Protects a mortgage lender, as an example.

LOT SIZE

An accepted incremental quantity or measure of what an entity is offering for sell or willing to purchase. Another name for lot quantity.

M1

demands on accounts such as circulating currency and deposits.

MACRO FORECAST

Broad, all-encompassing economic forecast covering employment and gross domestic product (GDP).

MAGNITUDE

Relative, scaled range of a specific criterion. An example is the Richter scale. It translates the magnitude of an earthquake into a scaled level that can be compared to other incidents. Also

MAJOR ASSEMBLY

Lower-level assemblies comprise, or the joining of several subassemblies become, this item.

MALICIOUS MISCHIEF

Intentional damage to property belonging to another person is an act comparable to vandalism.

MANDELBROT SET

Fractal fascinating in the richness of its detail. The French-US mathematician Benoit Mandelbrot (1924) discovered it. Mathematical formula’s output over many repetitions / iterations produces self-similar figures at an ever-decreasing scale. It

MANUFACTURER’S AGENT

For distribution in the same channels or to the same customers, this commission agent handles non-competitive but complementary products from several manufacturers. Manufacturer’s agents are normally confined to specific sales territories, used

MARGINAL ACCOUNT

Customers who are an abnormal risk of non-payment. Excessive liens and judgments against the customer or firm, slow purchases and payments, inadequate working capital, weak or indifferent management are all characteristic of

MARGINAL PRODUCER

An single production company in an industry that is barely profitable at prevailing market prices on their product line(s). Such a company may be unable to take advantage of economies that benefit

MARGINAL SOCIAL BENEFIT

An activity’s incremental benefit as perceived by society. Adding marginal external benefit and marginal private benefit results in this value.

MARKET CAPITALIZATION (MARKET CAP)

1. Ongoing market valuation of a public firm with publicly traded shares calculated as outstanding shares held by the shareholders counted times the current per share market price. It is, however, neither

MARKET POTENTIAL

During a certain period, in a specific product’s market, stating this measure as the estimated maximum total sales revenue of all suppliers.

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