Last Trading Day
What is the last trading day for a security The last trading day for a security is the final day that trading can take place before the security is no longer traded. This date is typically set by the issuer of the security, and it may be different from the date on which the security expires. For example, a bond...
Lanchester Strategy
What is 'Lanchester Strategy' A war strategy that has been successfully applied in the business context to entering new markets. The strategy is named after British engineer Frederick W. Lanchester, who published the laws governing the war strategy in a landmark publication titled "Aviation in Warfare: The Dawn of the Fourth Arm" in 1916. In business, the...
Lagged Reserves
Banks use lagged reserves to manage their liquidity and protect themselves from risks associated with deposit outflows. Lagged reserves are a critical tool for banks, and they have become increasingly important in the wake of the financial crisis. Here we will discuss what lagged reserves are, how they work, and the benefits and drawbacks of using them. We will...
Laddering
Definition Laddering is an investment technique that requires investors to purchase multiple financial products with different maturity dates. Laddering What is 'Laddering' The promotion of inflated pre-IPO prices for the sake of obtaining a greater allotment of the offering. Laddering is an illegal IPO practice in which the underwriter engages in the sale of IPO shares to clients with the implicit agreement that...
Ladder Option
What is 'Ladder Option' An option that locks-in gains once the underlying reaches predetermined price levels or "rungs," guaranteeing some profit even if the underlying security falls back below these levels before the option expires. Explaining 'Ladder Option' For example, consider a ladder call option with an underlying price of 50, with a strike...
Hanover Stock Exchange (HAN) .HA
What is 'Hanover Stock Exchange (HAN) .HA' Formerly located in Hanover, Germany, this stock exchange is now defunct. Explaining 'Hanover Stock Exchange (HAN) .HA' The HAN merged with the Hamburg Stock Exchange in 1999 to form the BOAG Borsen AG. This new entity has been overshadowed by the Frankfurt Exchange. Hanover Stock...
Nationalization
DefinitionNationalization is the process of transforming private assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to private assets or assets owned by lower levels of government, such as municipalities, being transferred to the state. The opposites of nationalization are privatization and demutualization. When previously nationalized assets are...
Easement In Gross
What does 'Easement In Gross' mean An easement in gross is an easement that attaches a particular right to an individual or entity rather than to the property itself. The easement in gross is often considered irrevocable for the life of the individual, but it can be rendered void if the individual sells the property upon which the easement request...
Economic Indicator
What is an 'Economic Indicator' An economic indicator is a piece of economic data, usually of macroeconomic scale, that is used by analysts to interpret current or future investment possibilities or to judge the overall health of an economy. Economic indicators can be anything the investor chooses, but specific pieces of data released by government and non-profit...
Earnings Surprise
DefinitionAn earnings surprise, or unexpected earnings, in accounting, is the difference between the reported earnings and the expected earnings of an entity. Measures of a firm's expected earnings, in turn, include analysts' forecasts of the firm's profit and mathematical models of expected earnings based on the earnings of previous accounting periods. Earnings Surprise What is an 'Earnings Surprise'...