Category: Finance Dictionary

Purchasing power doctrine preaching parity where the real purchasing power of different currencies trends to equalize differing inflation rate in the respective countries, forcing a similar price in each country for commodities

Natural element as a heavy metal that endangers life. Proven to cause mental retardation, increased infections and cancer rates. Lead blunts the body’s defense mechanisms, the immune system, and collects in blood,

Tracking two basic leadership attributes: concern for results and concern for people. A graphical tool for evaluating leader behavior along effective leadership styles..

An agreement allowing the renter to buy the leased item when the lease period expires. Typically, some or all of the lease payment is applied to the purchase. A lease-to-own arrangement usually

Specifically, a leasehold estate authorized with a set term by a deed .

Founded in 1850 by Henry Lehman, Emmanuel Lehman and Mayer Lehman. Worldwide financial services firm. Investment and financial services experts. Forced to file bankruptcy during the financial crisis of 2008 as one

Organizing by alphabetic method, ordering entries by letter-sequence. This method treats a multi-word entry as a single stream of letters with no spaces in it. Most reference books follow this method. One

Offer by deed change to a debtor close to default. Intent is to allow the debtor time to liquidate assets, or arrange to settle the debts without being declared bankrupt. Some or

Indicates serious and immediate health effects possible to any person exposed to a hazard even for a short period. Concentration level of an extremely hazardous substance in air.

Buying a company by using the company’s assets as collateral for the loan(s) to pay for the purchase. The company’s cash flow and assets are sold off to pay for the loan

A life insurance policy written for investors where the costs come from an insurance linked security.

Even if the principal amount is exhausted this settlement agreement’s life-time option continues paying the beneficiary in installments.

Estimated total profit, or loss, resulting over the life an ongoing business relationship with a customer. Comparatively higher value from marketing expenditure and/or salesperson compensation justify a high lifetime return on goods

For the several insurers covering the same property with a severe loss, this is a method of apportioning that a loss.

A private partnership with accredited investors that invest in a variety of stock.

The maximum amount of insurance a company can write without seeking a reinsurer.

A Statistical term. Defines the relationship of direct proportionality between two variables, expressed by a linear functions, graph plots a straight line, when one variable changes the other variable must change in

Lending institutions’ reluctance to loan reserve money based on short-term money-availability concerns. This makes it more expensive for banks to borrow funds from each other as interbank market interest rates increase placing

Solid waste lost to waste handling system, discarded carelessly, becoming uncollectible.

Moving demand from daily peak hours to off-peak hours. A load management technique.