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

Category: Finance Dictionary

VALUEATRISK (VAR)

The estimate of how much a portfolio will lose at market risk. It measures shortcomings and uncertainty. Refer to back testing, maximum loss, and profit and loss explain.

WATERED STOCK

Stock of a company whose assets are overvalued. The price does not accurately represent the companies position.

WITHOUT

When only a oneway quote is available for a security.

JOURNAL VOUCHER

Every financial transaction hat meets defined requirements has this prepared, written authorization.

JUNK FAX

Sending unsolicited stock ads by facsimile transmission (fax). Just like junk mail or spam, over the lines instead of by postal mail or electronic mail. A marketing strategy.

KAIZEN BUDGETING

A budgeting approach that includes product improvement costs. With the objective of reducing actual costs below standard costs, projected costs of improvement are already incorporated in the budget . Also refer to

KEY EMPLOYEE

Essential, main employee stakeholder in corporate operations. May be an officer with voting rights able to influence the company. Any employee owning company assets 5% or more of the total and/or receives

KEYNESIAN

Supporter of governmental economic intervention by public policies driving for full employment and price stability. A follower of John Maynard Keynes, a believer in his economic principles.

KINKED DEMAND CURVE

Standard demand curve with a bend depicting competitors decreasing prices to match another’s, yet not raising prices to match another’s. Concern is that raising prices lose customers, so that once a business

KNOWLEDGE CREATION

Defined by Ikujiro Nonaka, interactions between explicit and tacit knowledge form new ideas. Socialization (tacit to tacit), externalization (tacit to explicit), combination (explicit to explicit), and internalization (explicit to tacit) are the

LADDER OPTION

When a buyer locks in gains. Refer to the hatchet option, cliquet option, fixed and floating strike ladder option, or a shout option.

LANDING ACCOUNT

Warehouse keeper issues this document to a recently landed shipment’s consignee as the shipment is stored in the warehouse. The document gives details of the shipment and the date when demurrage charges

LAST

A given security’s most recently executed-transaction’s price.

LATENT MARKET

A potential market with ready consumers identified for a product or service not yet offered. Finding this potential helps a company move towards new products or services with building demand. The first

LAW OF ONE PRICE

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

LEAD (PB)

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,

LEADERSHIP GRID

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

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