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

Category: Finance Dictionary

TIER 1 CAPITAL

A banks core capital in the form of stocks, earnings, and reserves. Refer to tier 2 capital and economic capital.

TOO BIG TO FAIL

A financial institution that cannot fail without effecting the market. So they are granted help from central bank and possibly given bail out.

TRIPLE WITCHING HOUR

When futures, options, and equity settle on the same day. This happens once each quarter.

UNDERWRITING

Issuing securities on the primary market for an issuer. Or the act of predicting risk to ensure the possible gains are worth the risk. Refer to allornone underwriting, best efforts underwriting, and

VACANT

a building that does not have any contents or inhabitants.

VULTURE BID

When distressed assets of uncertain worth are sold at a deep discount. Refer to fire sale and vulture fund.

WIDOWS AND ORPHANS

An unsophisticated investor. They are protected from fraud or bad advice. Refer to aunt millie.

INDEX TRIGGER

An event that suspends coupon interest and principal when losses meet an agreed upon amount. Also called an indemnity or parametric trigger.

INSIDER TRADING

Where private information is used to create more profit. Sometimes this is considered a crime and punished. Refer to gun jumping.

JOURNAL PRINTER

Electronic cash register (ECR) or point of sale (POS) systems remote printer. Records cash transactions on a narrow (20column) paper tape at retail locations. An example is a supermarket checkout counter.

JUNIOR SECURITY

Subordinate investment vehicle, like a bond, debenture, stock share, whose claims and rights are subordinate or secondary to senior, primary investment vehicles. These claims and rights involve the assets and earnings of

JUST-WORLD PHENOMENON

Theory that bad things happen to people due to their previous bad acts. human tendency to rationalize injustice thinking that people will eventually want get what they want because the world is

KERNEL

Computer operating system nucleus. Manages core operations and hardware resources allocation. Also refer to shell.

KEYBOARD

Computer-system external input device for data entry. It could be to a mobile device, a personal computer, or any other electronic machine. This device has keys with alphabetic, numerical, and common symbols

KILOWATT (KW)

Electrical power measure of a standard unit equal to 1000 watts. Equivalent to 1.34 horsepower, or 1000 joules per second as a measured consumption rate.

KNOWLEDGE BASED SYSTEM

Artificial intelligence / expert system based software techniques. Used to solve process problems. Intended use is to respond to unique queries and expertise transfers, relating one domain of knowledge to another. Exists

LABOR LAWS

Labor laws first arrived as standards in the Industrial Revolution. Labor laws have two categories: collective and individual. Collective labor law covers union, employer and employee relationships. Individual labor law covers employees’

LANDED COST

Tally of purchase price, freight, insurance, and miscellaneous costs up to the port of destination. It typically includes shipment customs duties and tax levies. The total cost of a landed shipment.

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