The Law Dictionary

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

Category: Z

ZONING CODE

Local law saying how each parcel of land will be used. Also known as zoning ordinance.

ZERO LATENCY

Information technology. No time lag between information exchange to interfaces or the instant response to input.

ZONING PERMIT

Document from local government that allows a piece of land to be used for the prescribed purpose.

ZERO LATENCY ENTERPRISE

Firm responding to events as they happen as information between departments is exchanged with no delay.

ZERO RATE

Services and products exempt from value added tax.

ZZZZ BEST

Company created by Barry Minnow in the 1980’s that appeared to be successful but most of the profits were from crime , fraud or fabricated. Went public in 1986, bankrupt in 1987.

ZERO SUM GAME

Decision theory. Where a participant’s gain equals another’s loss. Also known as constant sum game. See negative or positive sum game.

ZERO UPTICK

Transaction at the same price as one before it but higher than the one before that.

ZERO AIR

Ambient air that has been filtered to have less than 0.1 PPM of hydrocarbons.

ZERO-COUPON BOND

Bond that (1) pays no interest but is sold subpar, (2) interest paying bond stripped of its coupon. Also known as non-interest bearing bond, zero interest bond, zero rated bond.

Z SCORE

The probability of bankruptcy. It is based on five financial ratios.

Z TABLE

an early mortality table which showed the actual mortality experienced by those insured by major insurers between 1925 and 1934.

ZAIBATSU

A japanese congromerate with one company taking control. It has been banned since the mid 1940s and is replaced by keiretsu.

ZAITECH

The final speculation of a japanese company to boost nonoperating income.

ZERO COST COLLAR

A spread with the long position in cap or call and the short on the floor or put. This also occurs vice versa. Refer to collar.

ZERO COUPON BOND

A discounted bond that is traded and pays no coupon interest during its life. The difference between par value and discount value generates profit.

ZERO COUPON INFLATION SWAP

A swap that exchanges floating for fixed rates at maturation. There are no intervening payments during the transaction. They are long term and last 10 or more years. Refer to annual inflation

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