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Financial Terms beginning with L

L Shaped Recovery
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
The degree of labour market flexibility is the speed with which labour markets adapt to fluctuations and changes in society, the economy or production.
Labor Productivity
Workforce productivity is the amount of goods and services that a worker produces in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity, often referred to as labor productivity, is a measure for an organization or company, a process, an industry, or a country. Workforce productivity is to be distinguished from employee productivity which is a measure employed at individual level based on the assumption that the overall productivity can be broken down to increasingly smaller units until, ultimately, to the individual employee, in order be used for example for the purpose of allocating a benefit or sanction based on individual performance. The OECD defines it as "the ratio of a volume measure of output to a volume measure of input". Volume measures of output are normally gross domestic product or gross value added, expressed at constant prices i.e. adjusted for inflation.
Labor Sponsored Venture Capital Corporations (LSVCC)
Labor Theory Of Value
The labor theory of value is a theory of value that argues that the economic value of a good or service is determined by the total amount of socially necessary labor required to produce it, rather than by the use or pleasure its owner gets from it. At present, this concept is usually associated with Marxian economics, although it is also used in the theories of earlier liberal economists such as Adam Smith and David Ricardo and later also in anarchist economics.
Labor Union
A trade union, labour union, or labor union is an organization of workers who have come together to achieve common goals such as protecting the integrity of its trade, improving safety standards, achieving higher pay and benefits such as health care and retirement, increasing the number of employees an employer assigns to complete the work, and better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with employers. The most common purpose of these associations or unions is "maintaining or improving the conditions of their employment". This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies.
Ladder Option
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 is a representation of the relationship between rates of taxation and the resulting levels of government revenue. The Laffer curve claims to illustrate the concept of taxable income elasticity—i.e., taxable income will change in response to changes in the rate of taxation. It postulates that no tax revenue will be raised at the extreme tax rates of 0% and 100% and that there must be at least one rate which maximises government taxation revenue.
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.
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
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.
Lapping Scheme
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 of Oracle Corporation and was CEO from its founding until September 2014. He is the executive chairman and chief technology officer of Oracle. As of February 2017, he was listed by Forbes magazine as the fifth-wealthiest person in America and as the seventh-wealthiest in the world, with a fortune of $55 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. 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 is an economic concept which posits that "a good must sell for the same price in all locations". This law is derived from the assumption of the inevitable elimination of all arbitrage.
Law Of Supply And Demand
In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that 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, all else equal, 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 of Oracle Corporation and was CEO from its founding until September 2014. He is the executive chairman and chief technology officer of Oracle. As of February 2017, he was listed by Forbes magazine as the fifth-wealthiest person in America and as the seventh-wealthiest in the world, with a fortune of $55 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 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. Rather than taking the item home and then repaying the debt on a regular schedule, as in most installment plans or hire purchases, the layaway customer does not receive the item until it is completely paid for. There is sometimes a fee associated, since the seller must "lay" the item "away" in storage until the payments are completed. Because there is little risk involved for the seller, layaway can be readily offered to those with bad credit. If the transaction is not completed, the item is returned to stock; the customer's money may be returned in whole, returned less a fee, or forfeited entirely.
Layered Fees
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.
Lead Underwriter
Leadership Grid
The managerial grid model is a style leadership model developed by Robert R. Blake and Jane Mouton.
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. Examples: 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, 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 gets promoted or relegated, or who gets a higher draft pick.
Learning Curve
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
Life Insurance
Life insurance or life assurance, especially in the Commonwealth, 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 can also be included in the benefits.
Liquidity Trap
A liquidity trap is a situation, described in Keynesian economics, in which injections of cash into the private banking system by a central bank fail to decrease interest rates and hence make monetary policy ineffective. A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war. Common characteristics of a liquidity trap are interest rates that are close to zero and fluctuations in the money supply that fail to translate into fluctuations in price levels.
In business, economics or investment, market liquidity is a market's ability to facilitate the purchase or sale of an asset without causing drastic change in the asset's price. Equivalently, an asset's market liquidity describes the asset's ability to sell quickly without having to reduce its price to a significant degree. 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.
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 lien 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.