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

Category: Finance Dictionary

INITIAL PUBLIC OFFERING (IPO)

The first public offering of a companies stock in the market. A retail client will buy the stock and sell it to their customers. Refer to addon and rights issues.

INTERMARKET SPREAD

When two assets prices are averaged together to make the basic price more stable.

JOINT STOCK COMPANY

A company selling stock to raise profits. Also called a corporation or a public limited company.

JUNIOR CLAIM

Stating that a right is subordinate to another right. A second mortgagee’s right is subordinate to the primary mortgagee’s right. A claim lower in precedence than a prior or senior claim. An

JUST ON TIME

To achieve uninterrupted single-piece flow through an entire manufacturing process, Just-in-time (JIT) becomes just-on-time, as successive downstream activities immediately follow previous upstream activities.

KEOGH ACT PLAN

Also referred to as a HR-10 plan. A plan that allows those who are self-employed to set up a retirement plan and have access to tax benefits comparative to the benefits offered

KEY RATIOS

Business analysts evaluate a firm’s financial position and income using these financial performance measures. They are reliably indicate management competence, specifically when compared to previous periods or against a competitor’s ratios. Net

KNOOP HARDNESS (KH)

Expressed in kilograms of force as a ratio of applied force. Penetration depth is measured in millimeters. Material hardness test of impact depth, not area. A pointed rhombohedral diamond is a highly

L

Yearly obligations to a financial institution.

LAMATERIAL

Fusing or joining sheets of different materials into one sheet. Properties are better that the collective properties of the constituent materials.

LARGE CAP STOCK

When a company’s stock gains more than $5 billion. Refer to micro and midcap stock.

LATE MAJORITY

Diffusion of innovation theory holds that the majority group of roughly 34 percent of population is just ahead of the ‘laggards’ in trying or adopting a new product. This group’s members are

LAW OF CONTRACT

Rules on agreements, oral and written, agency relationships, commercial paper, employment, and business organizations as a governing body of law.

LAY DAYS

Days a port authority allows a ship to load or unload cargo with no demurrage or late charges. Expressed as (1) Running Days: consecutive days plus weekends and holidays. (2) Working days:

LEAD USERS

Early consumers of latest methods, technologies, goods and products. This makes significant opportunities to springboard innovative products. As leading proponents, their needs direct the general market’s needs and choices.

LEAP YEAR

Every 4 years one extra day is added to the month of February. Increases the standard 365day year to 366 days. Necessary to synchronize the calendar and astronomical year. The leap year

LEG

Travel taken from one stop to another. Also known as portion or segment.

LEGALITY

In general, it is that which makes something legal. 1. As implied warranty that the statutes of a particular jurisdiction are the basis for any act, agreement, or contract in that jurisdiction.

LEONINE CLAUSE

A party is excused from sharing liabilities arising out of the agreement as a stated provision in said agreement.

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.