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

Category: L

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

LIFE INCOME

Even if the principal amount is exhausted this settlement agreement’s life-time option continues paying the beneficiary in installments.

LIFETIME VALUE OF A CUSTOMER

Estimated total profit, or loss, resulting over the life an ongoing business relationship with a customer. Comparatively higher value from marketing expenditure and/or salesperson compensation justify a high lifetime return on goods

LIMIT OF LIABILITY RULE

For the several insurers covering the same property with a severe loss, this is a method of apportioning that a loss.

LINE LIMIT

The maximum amount of insurance a company can write without seeking a reinsurer.

LINEAR RELATIONSHIP

A Statistical term. Defines the relationship of direct proportionality between two variables, expressed by a linear functions, graph plots a straight line, when one variable changes the other variable must change in

LIQUIDITY SQUEEZE

Lending institutions’ reluctance to loan reserve money based on short-term money-availability concerns. This makes it more expensive for banks to borrow funds from each other as interbank market interest rates increase placing

LITTER

Solid waste lost to waste handling system, discarded carelessly, becoming uncollectible.

LOAD SHIFTING

Moving demand from daily peak hours to off-peak hours. A load management technique.

LOCK-IN PERIOD

1. To generate a certain minimum return on the monies loaned, to cover the lender’s marketing and loan administration expenses, this is a period when loan full-payoff is not allowed without penalties,

LOGISTICS CHANNEL

Receiving, handling, storage, transportation, and communications functions as the focus of all networked participants in a supply chain.

LONG COUPON

On a bond, a longer period is covered by this specific interest payment than other coupons. The first interest installment is typically associated with a long coupon.

LONG TERM INVESTMENT

Bond, debenture, preferred stock/preference shares that mature in 10 years or more as an investment instrument.

LOOSE MONETARY POLICY

The government’s or central bank’s monetary policy and how the nation’s money supply is managed. It occurs by expanding the money supply and encouraging citizens and economic growth with easy access to

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