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

Category: Finance Dictionary

JUNK FEES

Lender fees, paid in dollars versus a percentage of the loan total. Described in unfavorable terms.

KAIZEN COSTING

Reducing product costs even if being produced. A process involving effective waste management, continuous product improvement and raw material price reduction. Cost minimization is a strategy in overall product cost reduction.

KEY ESCROW

Copy or copies of a code, password, or secret key protected by a third party for use in an emergency or when the originals) is(are) lost. Escrowed items may be separated to

KEYNESIAN THEORY

British economist John Maynard Keynes established this economic theory. A stable, growing economy requires active government intervention is the concept embodied by the theory.

KINKED YIELD CURVE

When medium term interest rates are higher than low or high. Refer to negative yield curve, yield curve, and positive yield curve.

KNOWLEDGE ECONOMY

Building, evaluating, and trading knowledge is the basis of this economy. Labor costs slowly decrease in importance while dwindling concern occurs over scarcity of resources and economies of scale, traditional economic concepts.

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..

LEASE TO OWN

An agreement allowing the renter to buy the leased item when the lease period expires. Typically, some or all of the lease payment is applied to the purchase. A lease-to-own arrangement usually

LEGAL LEASE

Specifically, a leasehold estate authorized with a set term by a deed .

LEHMAN BROTHERS

Founded in 1850 by Henry Lehman, Emmanuel Lehman and Mayer Lehman. Worldwide financial services firm. Investment and financial services experts. Forced to file bankruptcy during the financial crisis of 2008 as one

LETTER BY LETTER

Organizing by alphabetic method, ordering entries by letter-sequence. This method treats a multi-word entry as a single stream of letters with no spaces in it. Most reference books follow this method. One

LETTER OF LENIENCY

Offer by deed change to a debtor close to default. Intent is to allow the debtor time to liquidate assets, or arrange to settle the debts without being declared bankrupt. Some or

LEVEL OF CONCERN (LOC)

Indicates serious and immediate health effects possible to any person exposed to a hazard even for a short period. Concentration level of an extremely hazardous substance in air.

LEVERAGED BUYOUT (LBO)

Buying a company by using the company’s assets as collateral for the loan(s) to pay for the purchase. The company’s cash flow and assets are sold off to pay for the loan

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