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

Category: Finance Dictionary

LOAN ORIGINATION FEE

For making a mortgage loan, the lender charges a fee to the borrower. Typically a percentage of the loan principal.

LOCK-UP OPTION

When a company allows a white knight to purchase its most valuable assets to prevent a hostile takeover.

LOMBARD RATE

For loans on a collateralized security, this is the interest rate charged by the central bank of Germany.

LONG TON

2,240 pounds, also called an imperial ton. Mostly replaced these days with the metric ton or tonne. Weighs 1,000 kilograms or 2,204.68 pounds. One million dollars in new one dollar notes is

LOSS ASSESSOR

The insurer / insurance company hires one for an insured’s insurance claim investigation and settlement an insured. This person is typically and independent entity. Also refer to loss adjustor.

LOSS FROM LAWSUIT

Income loss on a company’s financial statement accounting for litigation proceedings’ financial impact.

LOSS PREVENTION SERVICE

Lessening damage payout by hazard elimination or reduction. Insurer or outside organization inspect and engineer improvements.

LOW COST STRATEGY

A company offers a relatively low price as a pricing strategy, seeking to stimulate demand and gain market share. One of three generic marketing strategies. Refer to differentiation strategy and focus strategy.

LUMBER

Prepared wood, readied for the process of being used in building, construction, paper, or other similar purposes. A tree cut down, or sawed into standard boarding, lumber refers to wood at any

MACARONI DEFENSE

When a company requires securities be purchased at a high cost preventing a hostile takeover.

MACRO RISKS

The nation’s economic relations with another nation as potential political issues. An example is a country’s middle class population revolting. Actions within or outside governmental control are viewed as potential risks.

MAIL SHOT

Unsolicited marketing material in a bulk distribution occurring in the UK. Also refer to spamming.

MAJOR ITEM

The operational capability of a machine, plant, or system would be impacted but not be a catastrophe if this item were unavailable.

MALLEABILITY

Beating, rolling metal into very thin sheets, allowing metal to be bent and twisted into practically any shape without cracking or rupturing as that metal’s characteristic.

MANAGEMENT DEVELOPMENT

Organizational development portion covering executive-level employees recruitment, assessment, and training to equip them for higher positions in leadership . This process typically includes: (1) cognitive thinking development, idea generation, and decision making,

MANIPULATION

1. In General, this is the handling of an implement or situation in an artful, expert, and skillful way. 2. In Law, this is appearing to deceive by false or misleading actions.

MANUFACTURING DEFECT

A deviation from design specifications during production resulting in a product’s defect, frailty or shortcoming.

MARGINAL COST

Production run’s total cost increase or decrease for making one more item unit. Situational computation: When fixed costs have already been absorbed by the already produced items and only the direct, variable

MARGINAL PRODUCTIVITY THEORY OF DISTRIBUTION

Formulated 1890’s distribution theory. States that until its marginal product value, which is revenue or yield resulting from the input, equals the input’s cost, capital and/or labor input to production will continue

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