Lead Time
What is lead time and why is it important In the business world, lead time is the amount of time that elapses between the start of a production process and the moment when the finished product is ready for shipping. Lead time is important because it can have a major impact on a company's bottom line. For example, if a...
Law Of Diminishing Marginal Utility
What is the law of diminishing marginal utility The law of diminishing marginal utility is the principle that as a person consumes more of a good or service, the utility they derive from each additional unit will decline. The law is often used to explain why people seek variety in their consumption and why they are willing to pay more...
Last Fiscal Year (LFY)
What is 'Last Fiscal Year - LFY' The most recent 12-month accounting period that a business uses when determining its annual financial performance. The SEC requires businesses to list their last fiscal year's revenue (in addition to other financial figures) in their 10-Q filings. Analysts and management will often use figures and metrics from a company's...
Layoff
DefinitionA 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...
Law Of Large Numbers
DefinitionIn 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....
Lady Godiva Accounting Principles (LGAP)
What is 'Lady Godiva Accounting Principles - LGAP' A theoretical set of accounting principles under which corporations would have to fully disclose all information, including that which often doesn't get reported to investors under generally accepted accounting principles (GAAP). These principles include disclosure of the following: -all off-balance sheet items -how new goodwill accounting rules...
Layered Fees
What is 'Layered Fees' Two sets of management fees that are paid by an investor for the same group of assets. This practice is found in many types of investment vehicles such as wrap funds, variable annuities, registered investment advisor client accounts and even mutual funds. Explaining 'Layered Fees' Information about layered fees in...
Law Of Supply And Demand
DefinitionIn 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...
Lease Option
DefinitionA 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 Option What is 'Lease Option ' An agreement...
Lambda
What is 'Lambda' The ratio of the percentage change in an option contract's price to the percentage change in the option's underlying price. Lambda is one of the Greeks – a collection of risk measures or risk sensitivities that are frequently used in options and derivatives analysis. Each Greek measures the sensitivity of a value in relation to a small...