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

Category: Finance Dictionary

TREASURY INFLATIONPROTECTED SECURITY (TIPS)

A US treasury note or bond whose profits are linked to inflation. They are sold in small amounts to make them available to retail investors.They pay coupons on a cycle with principal

UBERRIMAE FIDEI

Latin for in utmost good faith. It implies that the insured will disclose all relevant information to the insurer. The insured must also fulfill all obligations of the contract

UNLIMITED LIABILITY

When personal assets are used to absorb business failure. Refer to piercing the corporate veil.

VERTICAL LAYERING

When reinsurers assume different layers of risk. Some reinsurers will have no loss. The higher the layer the less exposed to risk. Refer to excess layer and horizontal layering.

WHENISSUED (WI) SECURITY

A security announced but not priced. It is informal but legally binding. When settled it trades like any seasoned security. Refer to to be announced and when issued treasury.

YIELD ENHANCEMENT

A strategy used to increase core returns. This is intended to be a low risk move. Refer to arbitrage speculation and hedging.

INCUBATOR

A firm offering a start up seed as venture capital. Also called accelerator

INELASTIC

The proportionate change between variables. Also called elastic or elasticity.

INTEREST COVERAGE

The way a company sees how it can manage its debt. This is also referred to as debt service coverage.

IN-THE-MONEY

When an underlying asset is worth more. Refer to atthemoney, moneyness, or out of the money.

JUMBLE DISPLAY

Single-price for varying products as a retail display. Also known as a clearance table or bin.

JURISDICTIONAL STRIKE

Illegal strike in an organization over a particular group of employees in dispute about the right to represent a existing trade union.

KDE

K Desktop Environment. KDE was a project begun by Matthias Ettrich in 1996. It was developed mainly by European volunteers. It is a Linux-based non-proprietary graphical user interface (GUI). It works with

KEY MONEY

Deposit on a leased property paid by the lessee.

KICKBACK

A bribe for routing a job, contract, or order. Typically comes out of the income generated by the job, contract, or order. Demanded by an official.

KLUGE

Something assembled from whatever was available to ‘make do’, but not built according to design or plan.

KNOWLEDGE WORKER

Data analysts, product developers, planners, programmers, and researchers capturing data to analyze and manipulate into information as a product or service. US management guru Peter Drucker, born in Austria in 1909 popularized

LAFFER CURVE

Conceptual relationship between marginal tax rates and total tax collections in a graphical representation named after US economics professor Arthur Laffer. He proposed that lower taxes encourage greater output and supply, increasing

LAPPING

Concealing theft of cash as a fraudulent practice. A cashier, clerk, or teller takes cash illegally from one customer’s payment to cover up taking cash from a previous customer’s payment, over and

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