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

Category: Finance Dictionary

VORSTAND

A german corporation’s management board. Refer to aufsichtsrat.

WHITE SQUIRE

A friendly company that takes partial control of a company. Refer to black, gray, and white knights.

ZOMBIE

A company that is insolvent but continues to operate. This is done before restructuring or a bail out occur.

INDEX FUTURE

A future contract exchanged in reference to a specific index sector, benchmark equity index, or equity basket. This is also called a commodity, currency, or interest rate future.

JUNIOR ISSUE

Stock (shares) classified as subordinate to others issued. Distribution of rights issue, dividend payment, and capital repayment must occur to the superior issues before the subordinate issues are satisfied. Also refer to

JUSTIFICATION AND APPROVAL

Documented contracting statement detailing why a noncompetitive contract award instead of open competition was selected.

KERBEROS

User authentication scheme for Open source (non-proprietary) and public domain (free). A client-server environment’s network security system. Named after Greek mythology’s fierce three-headed guard dog. At user login and every service request,

KEY TASK ANALYSIS

Typically employed in managerial or supervisory level employee training. Determining the level of performance required, time taken, quality of outcome, and total job or project quality by the study of a set

KILLER BEES

While being overcome in a hostile bidding war, a company receives a saving grace.

KNOWLEDGE BASE

Concepts, data, objectives, requirements, rules, and specifications as an organized knowledge repository. Typically this is a computer system, less often, an organization. It can be (1) a retrieval either as an expert

LABELING

Identifying information on packaging about its contents, on a container holding several packages, or the product itself. Relevant safety and shipping laws govern the type and quantity of information that must exist

LAND CERTIFICATE

Prima facie evidence of land ownership. Similar to a deed for unregistered land. Document of title issued by a government’s land registry agency for registered free-hold or lease-hold land.

LARGE CLAIM POOLING

Claims over a specified amount are placed in a pool to help curb fluctuations in premium amounts for smaller groups, as the pool is made up of claims charged by several smaller-sized

LATE TRADING

When clients enter mutual funds after the market is closed. This is illegal.

LAW OF DIMINISHING MARGINAL UTILITY

A product’s demand by a consumer declines with each additional unit acquired or consumed. A perceived, psychological generalization on the value of, or satisfaction gained.

LAYERED TRUST

Two or more trusts in sequence where each sequential trust is the beneficiary of the prior trust.

LEADER

An entity, typically, a person, that provides direction to those who follow. Often holds a dominant or superior position within a specific field. Exerts a high degree of control or influence over

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