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

Category: Finance Dictionary

TIGHT MARKET

A liquid market with large volume, strong two way flows, and a small spread. Refer to thin market.

TRACKING ERROR

The difference between a portfolios actual performance and its target. Indexing is used to minimize error. AKA tracking risk.

TWININ BARRIER OPTION

An option created with a barrier is breached. Two additional barriers are added to make the option more expensive. Refer to Twin out barrier option and barrier option.

UNDERWRITING RISK

The risk incurred if securities dont sell. Any shortfall must be covered by the underwriter. Or the risk that loss will be greater than insurance can cover.

VALUE DATE

The date a transaction is complete. AKA settlement date.

WARRANT

A long term option issued as a private instrument with a bond. This lowers funding costs. Refer to exwarrant, covered warrant, and bond with warrant.

WINDOW DRESSING

Changing the appearance on financial statements to make a company look better. It is ethically questionable.

INDEXING

An investment strategy that tries to predict the future perfromance of an asset with minimum error. This is also called an active investment strategy or an index fund.

JOURNAL PROPER

Miscellaneous credit transactions as original entries that do not fit into other recorded books. Books with used for opening entries, closing entries, transfer entries, adjustment entries, rectification entries, and rare transactions. Also

JUNIOR SUITE

A separate living / sitting area that is not a separate room is attached to a bedroom in this hotel accommodation.

KAIZEN

Small but continual improvements involving everyone from the chief executive to the lowest level workers achieves higher standards in quality enhancement and waste reduction. Mosaki Imai popularized it in his book ‘Kaizen:

KERNING

Spatial adjusting between certain characters along a text line. Natural shape and slope improve character appearance. Letter combinations like WA and VA look awkward and slow smooth eye flow along a text

KEYED ADVERTISEMENT

Print ad coded in an advertisement address to identify the source of the query or order. The words ‘Dept. DN’, for example, may indicate ad placements in a newspaper named ‘Daily News.’

KILOWATT-HOUR (KWH)

Electrical power consumption measure of a standard unit equal to 1000 watts in an hour. Equivalent to 860 kilocalories, or 3412 British thermal units (Btu) as a measured consumption rate.

KNOWLEDGE CAPITAL

Experience, information, knowledge, learning, and skills of the employees of an organization tallied into expertise, high-capability. Knowledge capital is an essential component of human capital. Knowledge capital builds the longest lasting competitive

LABOR STANDARDS

Forecasting or analyzing labor performance as computed, estimated, or measured values. Examples of these are assembly time, operations per hour, output per unit of time.

LANDFILL

Environmentally acceptable waste disposal to fill a depression in the earth. Typically, non-hazardous waste is layered and compressed over a specific area of land. At the end of each working day the

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