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

Category: Finance Dictionary

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,

INDICATIVE QUOTE

An offer given to a dealer that is uncertain. It is used as a guideline for future business offers.

INTENSITY MODEL

When a company estimates failure rate to predict default. Structural or markto market models are ways to do this.

JOURNALIZING

A double entry bookkeeping system of financial data pertaining to a specific transaction, in a journal usually taken from a journal voucher. Needed transaction data: (1) date done; (2) debit amount and

JUNK MAIL

Direct marketing or direct mail that is unsolicited. For introducing new products, books and magazines, investment opportunities, merchandise catalogs. It is a very big business in industrialized countries, specifically the US, UK,

KARAT

Fineness, as a measure of the purity, of gold. It also indicate gold proportion in an alloy. UK spelling of both carat and karat is carat. Germany spelling is karat. 24 karats

KEY JOBS

Organization’s and Labor market’s common jobs used to determine general pay scales. Clerks, drivers, janitors, and secretaries are examples of common jobs.

KEYNESIAN UNEMPLOYMENT

Because the economy is in recession, employers have low demands for their goods and services, situation exists where low wage-rates should drive to higher employment levels, but do not.

KIOSK

Upright, retail outlet display or entry-port in a large retail establishment or a shopping mall to assist customers.

KNOWLEDGE MANAGEMENT

Building of an organization’s intellectual assets by strategies and processes. Driving to identify, capture, structure, value, leverage, and share, enhancing results and market share. Two critical activities are its basis: (1) retain

LADDERED PORTFOLIO

Organized, arranged, steady income-producing investment portfolio. Bonds with different maturities spread the investment amount to hedge and minimize interest rate fluctuation impacts. Equal amounts of money buys bonds due to mature in

LANDLOCKED STATE

Condition of acreage having no direct access to the sea, being totally surrounded by other unique land areas. An example is Switzerland.

LATERAL SHELF FILE

side-by-side hanging-file filing cabinet, displaying all file tags/labels at once. A lateral file cabinet is wide instead of deep. Contrast vertical shelf file.

LAW OF PROPORTIONS

Economic concept that optimization brings an increase in returns from a manufacturing operation. A change in the proportion of production factors can push toward the optimum or away from it. An example

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