The Law Dictionary

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

Category: Z

ZERO-PROOF BOOKKEEPING

Used in small businesses and by individuals. Method of bookkeeping with a zero balance at end of the accounting period.

ZIP CODE

Code established by US Postal service to indicate each location. Has since been made 9 digits allowing more accurate identification of a location. Stands for Zoning Improvement Plan.

ZERO COST OPTION

Strategy of trading where one option purchased is equal to one option sold.

ZIPPED FILE

File of compressed data that can be expanded when received using an unzipping program.

ZERO COUPON CONVERTIBLE

Zero coupon bond that can be converted to common stock at a set price or if government issued into a bond bearing interest.

ZIPPER CLAUSE

Provision of collective bargaining agreements stating that all parts of the agreement are contained and nothing has ben left out.

ZERO DEFECTS

Level of prevention of defects where output is within limits.

ZOMBIE DEBT

Term describing old debts bought to life by actions of collecting it.

ZONATION

Dividing land into zones according to features or intensity of disasters.

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

ZERO COUPON SWAP

A sway exchanging periodic payments for one lump payment at maturation.

ZERO COUPON YIELD CURVE

A yield curve showing discounts for maturities from a starting point to present. This is done through stripping the yield curve.

ZERO MINUS TICK

When a security sells at the price the last transaction had. This price is lower than the transaction prior to that one. Refer to minus tick, plus tick and zero plus tick.

ZERO PLUS TICK

Selling a security at the same price as the last time but higher than the one prior to it. Refer to minus tick, plus tick, and zero minus tick,

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