The Law Dictionary

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

Category: Z

ZONING

Legislative process dividing land into zones for different uses such as industrial, open space, residential. See zonation.

ZERO INVENTORIES

Stage of ‘just in time inventory control’ where any waste is removed and only on hand and required inventory is available.

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.

ZOMBIE

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

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.