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

Category: Finance Dictionary

UP AND IN OPTION

An option that creates an european option if the price goes beyond a barrier. Refer to barrier, down and in, down and out, reverse knockin, knockin, and up and out options.

VIS MAJOR

Means overpowering force. An unavoidable event that will effect the profits of the firm. Risk transfer is sought in this case. Refer to force majuere.

WHISPER NUMBERS

Releasing corporate earnings before a full public announcement. The US limits this by prohibiting selective disclosure.

ZAIBATSU

A japanese congromerate with one company taking control. It has been banned since the mid 1940s and is replaced by keiretsu.

INFLATION-LINKED SECURITY

A bond that guarantees a return based on inflation. The coupon is the fixed rate and the principal adjusts according to the changing inflation rates. Refer to the terms ajustabonos and treasury

JENSEN INDEX

A way to asses risk by comparing potential risk against a portfolios possible returns.

JUMPING JUVENILE

When a child turns 21, the child’s insurance policy of this type automatically increases value without additional proof of insurability. Such a policy written on a child is typically in units of

JUST IN TIME INSTRUCTION

To avoid a time gap and loss of retention, required knowledge and skills are learned for immediate application in this training scheme.

KELLER PLAN

Learning material presented in small units of personalized instruction. Behavioral psychologist Fred Keller, developed this approach, which bears his name. Instructors only facilitate, grade as pass or fail, administer no punishment at

KEY PROCESS

Customer service and satisfaction, competitive advantage, and strategic success are essential business workflows In management’s view.

KICKING THE TIRES

Shopping by a potential investor for an investment brokerage firm described creatively.

KNOCK-IN OPTION

Event-driven benefit payoff tied to something occurring like a specific change in an asset’s price. Contrast to knock-out option.

KRAFT PAPER

At least 80 percent virgin wood pulp is in this strong brown unbleached paper.

LAISSEZ-FAIRE

An economic philosophy that suggest government involvement in finances is not necessary. The market will balance itself out naturally.

LAPSED POLICY

Non-payment of premiums causes cancellation/lapse of a policy.

LAW AND ORDER

Rapid enforcement of penalties imposed under criminal law drives firm dealing with instances of theft, violence, and disturbance of peace. Law enforcement agencies comply to limit their powers. Society, a vast population,

LAWS OF NATURE

Explaining how nature works by scientific generalizations. Arrived at by experimenting and/or observing or idealized descriptions.

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