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Financial Terms beginning with L

L Shaped Recovery
L
LAK (Lao Kip)
LBP (Lebanese Pound)
Labor Intensive
Labor intensity is the relative proportion of labor used in a process. Its inverse is capital intensity.
Labor Market Flexibility
Labor Productivity
Labor Sponsored Venture Capital Corporations (LSVCC)
Labor Theory Of Value
Labor Union
Ladder Option
Laddering
Laddering is an investment technique that requires investors to purchase multiple financial products with different maturity dates.
Lady Godiva Accounting Principles (LGAP)
Lady Macbeth Strategy
Laffer Curve
In economics, the Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of government revenue. It illustrates the concept of taxable income elasticity—i.e., taxable income changes in response to changes in the rate of taxation. The Laffer curve assumes that no tax revenue is raised at the extreme tax rates of 0% and 100%, and that there is a rate between 0% and 100% that maximizes government taxation revenue. The Laffer curve is typically represented as a graph that starts at 0% tax with zero revenue, rises to a maximum rate of revenue at an intermediate rate of taxation, and then falls again to zero revenue at a 100% tax rate. However, the shape of the curve is uncertain and disputed among economists. Under the assumption that revenue is a continuous function of the rate of taxation, then the maximum illustrated by the Laffer curve is due to Rolle's theorem, which is a standard result in calculus.
Laggard
Lagged Reserves
Lagging Indicator
Laissez Faire
Laissez-faire is an economic system in which transactions between private parties are free from government intervention such as regulation, privileges, tariffs and subsidies. The phrase laissez-faire is part of a larger French phrase and basically translates to "let do", but in this context usually means to "let go".
Lakshmi Mittal
Lakshmi Niwas Mittal is an Indian steel magnate, based in the United Kingdom. He is the chairman and CEO of ArcelorMittal, the world's largest steelmaking company. Mittal owns 38% of ArcelorMittal and holds an 11% stake in Queens Park Rangers F.C.
Lambda
Lame Duck
Lancaster University Management School (LUMS)
Lanchester Strategy
Land Contract
A land contract — often described by other terminology listed below — is a contract between the buyer and seller of real property in which the seller provides the buyer financing in the purchase, and the buyer repays the resulting loan in installments. Under a land contract, the seller retains the legal title to the property, while permitting the buyer to take possession of it for most purposes other than legal ownership. The sale price is typically paid in periodic installments, often with a balloon payment at the end to make the timelength of payments shorter than in the corresponding fully amortized loan. When the full purchase price has been paid including any interest, the seller is obligated to convey legal title to the property. An initial down payment from the buyer to the seller is usually also required.
Land Flip
Land Lease Option
Land Rehabilitation
Land rehabilitation is the process of returning the land in a given area to some degree of its former state, after some process has resulted in its damage. Many projects and developments will result in the land becoming degraded, for example mining, farming and forestry.
Land Trust
There are two distinct definitions of a land trust...
Land Value Tax (LVT)
Land Value
Land
Landlocked
A landlocked state or landlocked country is a sovereign state entirely enclosed by land, or whose only coastlines lie on closed seas. There are currently 49 such countries, including five partially recognised states. Only two, Bolivia and Paraguay in South America, lie outside Afro-Eurasia.
Landlord
Landominium
Lapping Scheme
Lapse
Large Cap (Big Cap)
Large Cap (Under Review)
Large Trader
Large Value Stock
Large Value Transfer System (LVTS)
Larry Ellison
Lawrence Joseph Ellison is an American businessman, entrepreneur, and philanthropist who is co-founder, executive chairman and chief technology officer of Oracle Corporation. As of June 2018, he was listed by Forbes magazine as the fifth-wealthiest person in the United States and as the eighth-wealthiest in the world, with a fortune of $54.5 billion.
Larry Montgomery
Last Fiscal Year (LFY)
Last In, First Out (LIFO)
Last Mile
The last mile or last kilometer is a colloquial phrase widely used in the telecommunications, cable television and internet industries to refer to the final leg of the telecommunications networks that deliver telecommunication services to retail end-users. More specifically, the last mile refers to the portion of the telecommunications network chain that physically reaches the end-user's premises. Examples are the copper wire subscriber lines connecting landline telephones to the local telephone exchange; coaxial cable service drops carrying cable television signals from utility poles to subscribers' homes, and cell towers linking local cell phones to the cellular network. The word "mile" is used metaphorically; the length of the last mile link may be more or less than a mile. Because the last mile of a network to the user is conversely the first mile from the user's premises to the outside world when the user is sending data, the term first mile is also alternately used.
Last Sale Reporting
Last Trading Day
Last Twelve Months (LTM)
Last Will And Testament
A will or testament is a legal document by which a person, the testator, expresses their wishes as to how their property is to be distributed at death, and names one or more persons, the executor, to manage the estate until its final distribution. For the devolution of property not disposed of by will, see inheritance and intestacy.
Late Day Trading
Late Majority
Latin Baseball Futures
Lattice Based Model
Laughing Heir
In the law of inheritance, a laughing heir is an heir who is legally entitled to inherit the property of a person who has died, even though that heir is only distantly related to the deceased, and therefore has no personal connection or reason to feel bereaved over the death.
Law Of 29
Law Of Demand
In microeconomics, the law of demand states that, "conditional on all else being equal, as the price of a good increases, quantity demanded decreases ; conversely, as the price of a good decreases, quantity demanded increases ". In other words, the law of demand describes an inverse relationship between price and quantity demanded of a good. Alternatively, other things being constant, quantity demanded of a commodity is inversely related to the price of the commodity. For example, a consumer may demand 2 kilograms of apples at Rs 70 per kg; he may, however, demand 1kg if the price rises to Rs 80 per kg. This has been the general human behaviour on relationship between the price of the commodity and the quantity demanded. The factors held constant refer to other determinants of demand, such as the prices of other goods and the consumer's income. There are, however, some possible exceptions to the law of demand, such as Giffen goods and Veblen goods.
Law Of Diminishing Marginal Utility
Law Of Large Numbers
In probability theory, the law of large numbers is a theorem that describes the result of performing the same experiment a large number of times. According to the law, the average of the results obtained from a large number of trials should be close to the expected value, and will tend to become closer as more trials are performed.
Law Of One Price
The law of one price constitutes the basis of the theory of purchasing power parity, an assumption that in some circumstances it would cost exactly the same number of, for example, US dollars to buy euros and then to use the proceeds to buy a market basket of goods as it would cost to use those dollars directly in purchasing the market basket of goods.
Law Of Supply And Demand
In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded will equal the quantity supplied, resulting in an economic equilibrium for price and quantity transacted.
Law Of Supply
The law of supply is a fundamental principle of economic theory which states that, keeping other factors constant, an increase in price results in an increase in quantity supplied. In other words, there is a direct relationship between price and quantity: quantities respond in the same direction as price changes. This means that producers are willing to offer more products for sale on the market at higher prices by increasing production as a way of increasing profits.
Law of Diminishing Marginal Returns
In economics, diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.
Lawful Money
Lawrence Ellison
Lawrence Joseph Ellison is an American businessman, entrepreneur, and philanthropist who is co-founder, executive chairman and chief technology officer of Oracle Corporation. As of June 2018, he was listed by Forbes magazine as the fifth-wealthiest person in the United States and as the eighth-wealthiest in the world, with a fortune of $54.5 billion.
Lawrence Klein
Lawrence Robert Klein was an American economist. For his work in creating computer models to forecast economic trends in the field of econometrics in the Department of Economics at the University of Pennsylvania, he was awarded the Nobel Memorial Prize in Economic Sciences in 1980 specifically "for the creation of econometric models and their application to the analysis of economic fluctuations and economic policies." Due to his efforts, such models have become widespread among economists. Harvard University professor Martin Feldstein told the Wall Street Journal that Klein "was the first to create the statistical models that embodied Keynesian economics," tools still used by the Federal Reserve Bank and other central banks.
Layaway
Layaway is an agreement in which the seller reserves an item for a consumer until the consumer completes all the payments necessary to pay for that item.
Layered Fees
Layoff
A layoff is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees for business reasons, such as personnel management or downsizing an organization. Originally, layoff referred exclusively to a temporary interruption in work, or employment but this has evolved to a permanent elimination of a position in both British and US English, requiring the addition of "temporary" to specify the original meaning of the word. A layoff is not to be confused with wrongful termination. Laid off workers or displaced workers are workers who have lost or left their jobs because their employer has closed or moved, there was insufficient work for them to do, or their position or shift was abolished. Downsizing in a company is defined to involve the reduction of employees in a workforce.
Lead Bank
Lead Time
A lead time is the latency between the initiation and execution of a process. For example, the lead time between the placement of an order and delivery of a new car from a manufacturer may be anywhere from 2 weeks to 6 months. In industry, lead time reduction is an important part of lean manufacturing and lean construction.
Lead Underwriter
Leadership Grid
The managerial grid model is a style leadership model developed by Robert R. Blake and Jane Mouton.
Leadership
Leading Indicator
An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles. Economic indicators include various indices, earnings reports, and economic summaries: for example, the unemployment rate, quits rate, housing starts, consumer price index, consumer leverage ratio, industrial production, bankruptcies, gross domestic product, broadband internet penetration, retail sales, stock market prices, and money supply changes.
Leading Lipstick Indicator
Leads And Lags
In international finance, leads and lags refer to the expediting or delaying, respectively, of settlement of payments or receipts in a foreign exchange transaction because of an expected change in exchange rates. A change in exchange rates can be a cause of loss in international trade, thus the settlement of debts is expedited or delayed in an attempt to minimize the loss or to maximize the gain. In the leads and lags, the premature payment for goods purchased is called a "lead," while the delayed payment is called a "lag."
League Table
Standings or rankings are listings which compare sports teams or individuals, institutions, nations, companies, or other entities by ranking them in order of ability or achievement. A table or chart may be employed to display such listings. A league table may list several related statistics, but they are generally sorted by the primary one that determines the rankings. Many industries and institutions may compete in league tables in order to help bring in new customers and clients. Those tables ranking sports teams are generally used to help determine who may advance to the playoffs or another tournament, who ispromoted or relegated, or who gets a higher draft pick.
Leakage
Learning Curve
Lease
A lease is a contractual arrangement calling for the to pay the lessor for use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment is also leased.
Lease Balance
Lease Extension
Lease Option
A lease option is a type of contract used in both residential and commercial real estate. In a lease-option, a property owner and tenant agree that, at the end of a specified rental period for a given property, the renter has the option of purchasing the property.
Lease Payments
Leverage
Libor
Life Insurance
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses, such as funeral expenses, can also be included in the benefits.
Liquidity Trap
A liquidity trap is a situation, described in Keynesian economics, in which, "after the rate of interest has fallen to a certain level, liquidity preference may become virtually absolute in the sense that almost everyone prefers [holding] cash [rather than] holding a debt which yields so low a rate of interest."
Liquidity
In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity is about how big the trade-off is between the speed of the sale and the price it can be sold for. In a liquid market, the trade-off is mild: selling quickly will not reduce the price much. In a relatively illiquid market, selling it quickly will require cutting its price by some amount. Liquidity can be measured either based on trade volume relative to shares outstanding or based on the bid-ask spread or transactions costs of trading.
Loan to Value
The loan-to-value ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is commonly used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property. For instance, if someone borrows $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000 to $150,000 or $130,000/$150,000, or 87%. The remaining 13% represent the lender's haircut, adding up to 100% and being covered from the borrower's equity. The higher the LTV ratio, the riskier the loan is for a lender.
Long