Libor
LIBOR stands for the London InterBank Offered Rate. It is also termed as ICE LIBOR these days because the Inter Continental Exchange or ICE governs this rate. It describes the average rate of interest, estimated by banks in London for borrowing from other banks on fixed terms. LIBOR was first controlled by the British Bankers Association or BBA but...
Layaway
DefinitionLayaway 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. Layaway What does 'Layaway' mean Layaway is a purchasing method that allows a consumer to put a product on hold by placing a deposit on the item. Layaway allows the...
Last Twelve Months (LTM Finance)
What does 'Last Twelve Months - LTM' mean The term "last twelve months" (LTM), which is sometimes known as "trailing twelve months" (TTM), refers to the time period of the immediately previous 12 months in relation to a financial indicator used to assess a company's performance, such as sales or debt to equity (D/E). However, although though a 12-month period is...
Last In, First Out (LIFO)
What is Last In, First Out (LIFO)? LIFO is an inventory accounting method in which the most recently acquired items are the first ones to be sold. This approach is used to match current revenue with current expenses, and it can also help businesses manage their inventory levels. In a LIFO system, businesses keep track of inventory using a "stack"...
Lattice-Based Model
What is 'Lattice-Based Model' An option pricing model that involves the construction of a binomial tree to show the different paths that the underlying asset may take over the option's life. A lattice model can take into account expected changes in various parameters such as volatility over the life of the options, providing more accurate estimates of...
Lead Bank
What is Lead Bank and how does it work A lead bank is a financial institution that acts as the coordinator for a syndicated loan. The lead bank is responsible for assembling the syndicate, negotiating terms with the borrower, and organising the syndicated loan agreement. The lead bank typically provides the biggest share of the loan and sets the interest...
Law Of Supply
DefinitionThe 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...
Law Of 29
What is 'Law Of 29' A belief held by some marketers that on average a prospective customer will not purchase a good or service until they have been exposed to a marketing message 29 times. While the number of messages can differ a great deal when courting prospective clients, advocates of the law of 29 believe that...
Lawrence Ellison
DefinitionLawrence 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 Ellison What is 'Lawrence...
Latin Baseball Futures
What is 'Latin Baseball Futures' A financial contract used to speculate on the potential of teenage baseball players from Latin America who are training to earn spots in Major League Baseball (MLB). Investors in Latin baseball futures finance academies that train the young athletes and receive a return on their investment when a player is signed to...