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

Category: Finance Dictionary

LIGHT EMITTING DIODE (LED)

Electronic device, the diode, that emits light by restricting electric current through it. LED-based lighting bulbs consume little current and last for decades. Red or green came from older LEDs made from

LIMITED AGENT

In some states, this type of agent has lesser education and licensing requirements. An agent allowed to deal only is specific forms of insurance, like travel insurance.

LINE POSITION

An organization’s chain-of-command job position accountable for the organization’s resources decisions to generate revenue and achieve organizational objectives. Also refer to line and staff management.

LISTED PROPERTY

Property for lease or sale assigned to an authorized real estate broker. Also known as listing.

LIVING BENEFITS RIDER

A insurance rider attached to a life insurance contract for an insured person who is terminally ill, providing long-term care benefits.

LOAN ORIGINATION FEE

For making a mortgage loan, the lender charges a fee to the borrower. Typically a percentage of the loan principal.

LOCK-UP OPTION

When a company allows a white knight to purchase its most valuable assets to prevent a hostile takeover.

LOMBARD RATE

For loans on a collateralized security, this is the interest rate charged by the central bank of Germany.

LONG TON

2,240 pounds, also called an imperial ton. Mostly replaced these days with the metric ton or tonne. Weighs 1,000 kilograms or 2,204.68 pounds. One million dollars in new one dollar notes is

LOSS ASSESSOR

The insurer / insurance company hires one for an insured’s insurance claim investigation and settlement an insured. This person is typically and independent entity. Also refer to loss adjustor.

LOSS FROM LAWSUIT

Income loss on a company’s financial statement accounting for litigation proceedings’ financial impact.

LOSS PREVENTION SERVICE

Lessening damage payout by hazard elimination or reduction. Insurer or outside organization inspect and engineer improvements.

LOW COST STRATEGY

A company offers a relatively low price as a pricing strategy, seeking to stimulate demand and gain market share. One of three generic marketing strategies. Refer to differentiation strategy and focus strategy.

LUMBER

Prepared wood, readied for the process of being used in building, construction, paper, or other similar purposes. A tree cut down, or sawed into standard boarding, lumber refers to wood at any

MACARONI DEFENSE

When a company requires securities be purchased at a high cost preventing a hostile takeover.

MACRO RISKS

The nation’s economic relations with another nation as potential political issues. An example is a country’s middle class population revolting. Actions within or outside governmental control are viewed as potential risks.

MAIL SHOT

Unsolicited marketing material in a bulk distribution occurring in the UK. Also refer to spamming.

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