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Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Jointly And Severally
Municipal bond underwriting in which the account is undivided and syndicate members are responsible

Jonestown Defense
An extreme defensive tactic employed by the management of a target corporation to prevent a hostile

Jumbo Certificate Of Deposit
A certificate of deposit in increments of $100,000.

Jumbo Loan
Loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or

Jump Ball
Used in the context of general equities. (1) Deal in which no trading house has exclusivity (each fi

Junior Debt (Subordinate Debt)
Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been

Junior Issue
A debt or equity issue from one corporation over which the issue of another firm takes precedence wi

Junior Mortgage
A mortgage that will be satisfied only after more senior mortgages have been satisfied. e.g., a firs

Junior Refunding
Issuing of new securities to refinance government debt that matures in one to five years.

Junior Security
A security that has a lower-priority claim on a company's assets and income than a senior security.

Junk Bond
A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower. Junk or high-yield bon

Jury Of Executive Opinion
A method of forecasting using a composite forecast prepared by a number of individual experts. The e

Just Me Asking
Used in the context of general equities. 'Not a customer request for information.'

Just-In-Time Inventory Systems
Systems that schedule materials to arrive exactly when they are needed in the production process.

Justified Price
The fair market price of an asset.

Kaffirs
South African gold mining shares that trade on the London Stock Exchange.

Kangaroos
Australian stocks.

Kansas City Board Of Trade (KCBT)
The U.S.-based futures and options exchange for no. 2 red wheat futures and, options, Value Line Ind

Kappa
The ratio of the dollar price change in the price of an option to a 1% change in the expected volati

Keiretsu
A network of Japanese companies organized around a major bank.

Keogh Plan
A type of pension account in which taxes are deferred. Available to those who are self-employed.

Key Industry
An industry that plays a critical role in a nation's economy.

Key Man (Or Woman) Insurance
A life insurance policy purchased by a company to insure the life of a key executive. The company is

Keynesian Economics
An economic theory of British economist, John Maynard Keynes that active government intervention is

Kick It Out
Used in the context of general equities. 'Liquidate a position (sell a long/cover a short) without r

Kickback
In the context of finance, refers to compensation of dealers by sales finance companies for discount

Kicker
An additional feature of a debt obligation that increases its marketability and attractiveness to in

Kiddie Tax
Tax owed for the investment income of children if the amount is more than $1,400.

Killer Bees
Those who aid a company in fending off a takeover bid, usually investment bankers who devise strateg

Kiting
Used in of banking to refer to the practice of depositing and drawing checks at two or more banks an

Knock-Out Option
An option that- is worthless at expiration if the underlying commodity or currency price reaches a s

Know Your Customer
An ethical foundation of securities brokers that an adviser who recommends the purchase or sale of a

Kondratieff Wave
An economic theory of the Soviet economist Kondratieff stating that the economies of the western wor

Kruggerand
A gold coin minted by the republic of South Africa that typically sells for slightly higher prices t

Kuala Lumpur Stock Exchange (KLSE)
Established in 1973, the Kuala Lumpur Stock Exchange (KLSE) is the only stock exchange in Malaysia.

Kurtosis.
Measures the fatness of the tails of a probability distribution. A fat-tailed distribution has highe

Labor
Another term for direct labor. See also salaries and benefits.

Ladder Strategy
A bond portfolio construction strategy that invests approximately equal amounts in every maturity wi

Lady Macbeth Strategy
Strategy in which a third party poses as a white knight in a takeover bid, and then joins forces wit

Laffer Curve
A curve conjecturing that economic output will increase if marginal tax rates are cut. Named after e

Lag
Payment of a financial obligation later than is expected or required, as in lead and lag. Also, the

Lag Response Of Prepayments
A delay of typically about three months between the time the weighted-average coupon of an MBS pool

Lagging Indicators
Economic indicators that follow rather than precede the country's overall pace of economic activity.

Laisse-Faire
Doctrine that a government should not interfere with business and economic affairs.

Lambda
The ratio of a change in the option price to a small change in the option volatility. It is the part

Land Contract
A method of real estate financing; a mortgage-holding seller finances a buyer by taking a down payme

Landlord
A property owner who rents property to a tenant.

Lapsed Option
An option that no longer has any value because it has reached its expiration date without being exer

Large-Cap
A stock with a high level of capitalization, usually at least $5 billion market value.

Last In, First Out (LIFO)
A method of inventory valuation whereby the goods most recently purchased or manufactured are consid

Last Sale
The most recent trade performed in a security.

Last Split
After a stock split, the number of shares distributed for each share held and the date of the distri

Last Trading Day
The final day under an exchange's rules during which trading may take place in a particular futures

Late Charge
A fee a credit grantor charges a borrower for a late payment.

Late Tape
A delay in the display of price changes on the tape of an exchange because of heavy trading. In seve

Launder
To move illegally acquired cash through financial systems so that it appears to be legally acquired.

Law Of Large Numbers
The mean of a random sample approaches the mean (expected value) of the population as sample size in

Law Of One Price
An economic rule stating that a given security must have the same price no matter how the security i

Lay Off
In the context of general equities, this eliminates all or part of a position by finding customers o

Layup
Used in the context of general equities. Easily executed trade or order. See

Lead
Payment of a financial obligation earlier than is expected or required.

Lead Manager
The commercial or investment bank with the primary responsibility for organizing syndicated bank cre

Lead Pipe
Used in the context of general equities. Virtually certain that trade will take place; lead pipe cin

Lead Regulator
A leading self-regulatory organization that over sees compliance with a particular section of the la

Lead Underwriter
The head of a syndicate of financial firms that are sponsoring an initial public offering of securit

Leader
A stock or group of stocks that is the first to move in a market upsurge or downturn.

Leading Economic Indicators
Economic series that tend to rise or fall in advance of the rest of the economy.

Leading The Market
In the context of general equities, this is a stock or group of stocks moving with the market as a w

Leakage
Release of information selectively or not before official public announcement.

Lease
A long-term rental agreement, and a form of secured long-term debt.

Lease
A long-term contract granting use of real estate, equipment or other fixed assets in exchange for pa

Lease Acquisition Cost
The legal fees and other expenses incurred when acquiring a lease.

Lease Rate
The payment per period stated in a lease contract.

Lease-Purchase Agreement
An agreement that allows for portions of lease payments to be used to purchase the leased property.

Leaseback
A transaction that involves the sale of some property, and an agreement by the seller to lease the p

Leasehold
An asset providing the right to use property under a lease agreement.

Leasehold Improvement
An improvement made to leased property.

Leaves
Used in the context of general equities. Remains to buy or sell of a previously entered order after

Ledger Cash
A firm's cash balance as reported in its financial statements. Also called book cash.

Leg
A prolonged trend in stock market prices, such as a multiple-period bull market; or, an option that

Leg Up
Used in the context of general equities. (1)Have a portion of the offsetting side of a trade in your

LEGAL
A computerized database maintained by the NYSE to keep track of enforcement actions, audits, and com

Legal Bankruptcy
A legal proceeding for liquidating or reorganizing a business.

Legal Capital
Value at which a company's shares are recorded in its books.

Legal Defeasance
The deposit of cash and permitted securities, as specified in the bond indenture, into an irrevocabl

Legal Entity
A person or organization that can legally enter into a contract, and may therefore be sued for failu

Legal Investments
Investments that a regulated entity is permitted to make under the rules and regulations that govern

Legal List
A list of high-quality debt and equity securities chosen by a state agency that are acceptable holdi

Legal Monopoly
A government-regulated firm that is legally entitled to be the only company offering a particular se

Legal Transfer
A stock transaction that requires special documentation in addition to standard stock or bond power

Legislative Risk
The risk that new or changed legislation will have a large positive or negative effect on an investm

Legitimate
Used in the context of general equities. Real interest in trading as compared to a profile stance. S

Lemon
An investment with poor results.

Lend
To provide money temporarily on the condition that it or its equivalent will be returned, often with

Lender
Businesses that provide loans to others.

Lender Of Last Resort
Traditionally the Federal Reserve Bank in the U.S., which assists banks that face large withdrawals

Lending Agreement
A contract regarding funds transferred between a lender and a borrower.

Lending At A Premium
A loan from one broker to another of securities to cover a customer's short position, with a borrowi

Lending At A Rate
Interest paid to a customer on the credit balance received from a short sale.

Lending Securities
Securities borrowed from a broker's inventory, from another customer's margin account, or from anoth