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

Category: Finance Dictionary

TRANCHETTE

An issue of gilts by the bank of england. It is a small amount used in retail investment.

TWOFACTOR INTEREST RATE MODEL

When an interest rate is decided by creating a yield curve for the long and short term. It is a more precise way to choose the best rate.

VANILLA

A standard financial transaction. They have the greatest liquidity and smallest spread.

WEATHER BOND

When weather risks cause securitization. These risks can be temperature or percipitation. This is not the result of a catastrophe. Repayment stops when loss causing weather damages crops. Refer to catastrophe bond,

JPMORGAN CHASE

New York City-based financial services firm. One of the oldest firms of this type. Its credit card business serves the most individuals while providing varied consumer services.

JUNKET

With someone else paying, like taxpayers, taking an extravagant business and/or pleasure trip.

KARL MARX

The foundation of communism evolved from this revolutionary socialist thinker. He strongly opposed capitalism, believing it would destroy societies by increasing tensions and disparity between workers and owners. His theories and ideas

KEY LIFETIME

For encryption-decryption security, private decryption keys have no expiration, an indefinite lifetime. Secret keys, however, have terminal lifetimes that need to be defined in an organization’s security policy.

KEYSTONE MARKUP

Gross margin equaling cost price or half the sale price. Said another way, any item selling at twice the wholesale cost, purchased or produced, has a keystone markup.

KIT

One item under its own part number or SKU, comprised of several other finished goods (FG), each with its own SKU. Refer to separate stock keeping unit (SKU).

KNOWLEDGE MAP

Atlas of documents, files, databases, recordings of best practices or activities, or web pages as a organization’s internal or external repositories guide and inventory.

LADDERING

When an underwrite gives extra share when an investor agrees to buy on the secondary market. This is illegal and is called spinning.

LANDLORD’S LIEN

Non-payment of rent and/or other charges gives rights to the lessor/owner to seize and sell a tenant’s assets.

LAST CLEAR CHANCE

A principle for making an individual liable for an accident for not avoiding the situation when a final clear opportunity presented itself.

LATERAL THINKING

Term coined by Maltese-born UK psychologist, Dr. Edward de Bono, in his 1970 book, ‘Lateral Thinking.’ Technique to generate Ideas and solve problems. New concepts-building looks for novel ways. Contrast logical, ‘vertical’

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