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

Category: Finance Dictionary

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 WORKOUT

Delinquent borrower’s payoff routine worked out with a lender. Rescheduling the loan, having a longer payback period, having smaller installment amount are typical conditions. Staves off further delinquency and likely foreclosure.

LOCUS OF CONTROL

Amount of control an entity believes it exerts over current and anticipated circumstances, as well as expected responses as behavior toward these circumstances.

LOME CONVENTION

Agreement to provide aid and extend trade and tariff preferences to 62 African, Caribbean, and Pacific (CAP) states by the European community, now the European Union. In 1975 the capital of Togo,

LONG POSITION

With the intention of holding purchase securities in anticipation of a price increase, an investor purchases or contracts to purchase commodities, financial instruments, and shares. An investor with a long position is

LONGEVITY PAY

A contract to provide annual seniority-based employee compensation. Given as compensation for their service to top pay-scale employees.

LOSS CARRYBACK

Current year’s net loss offsets previous year’s taxable income as an accounting adjustment, giving a tax refund as already paid. US tax law allowance. Also refer to loss carryforward.

LOSS RATIO

The ability an insurance company has to cover its loss with premiums.

LOW DOCUMENTATION LOAN

Loans given to borrowers unable or unwilling to give a lender certain information or documentation. A variety of loan types are considered to be low documentation. Not everyone is eligible for this

LUMINANCE

Measuring a light source’s Intensity in a unit area. Also refer to illuminance.

MACAULAY DURATION

In 1938 US academic Frederick Macaulay defined this tool. A fixed-income financial instrument’s approximate measure of its price volatility and interest rate-sensitivity. An interest bearing bond is an instrument example. Calculated as

MACROECONOMIC CONDITIONS

National or state-level economic factors. These influence the whole aggregated economy. Changes in employment levels, gross national product (GNP), and prices, be it deflation or inflation, are typical influences.

MAILING LIST

Listed physical mailing addresses. Names, phone numbers, household income levels, and geographical location are typical data elements on the list. Used to send advertisements and relevant information to listed individuals. A company

MAJOR MARKET INDEX

Trading in options and futures is based on an index such as this. 20 blue-chip stocks comprise such a US stockmarket index. 17 of these blue-chip are also in the Dow Jones

MALNUTRITION

An insufficient, poor, sub-nutritional diet or an excessive, rich but unbalanced diet tied to a lack of calories and/or essential minerals, proteins, vitamins, manifests as a diseased state of kwashiorkor, marasmus, oedema,

MANAGEMENT INDICATORS

Resources consumed per unit of output as measured relates actual performance and results achieved to desired, targeted objectives. Also refer to management ratios.

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