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...
Last Will And Testament
Definition 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. What is...
Large Cap (Big Cap)
What does 'Large Cap - Big Cap' mean Large cap (sometimes "big cap") refers to a company with a market capitalization value of more than $10 billion. Large cap is a shortened version of the term "large market capitalization." Market capitalization is calculated by multiplying the number of a company's shares outstanding by its stock price per...
Law Of One Price
DefinitionThe 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...
Land Flip
What is 'Land Flip' A fraudulent practice in the real estate business of selling undeveloped land at highly inflated prices. A land flip occurs when a group of dishonest buyers trades the land among its members, increasing the price with each transaction. The group will then finally unload the property onto an unsuspecting outside buyer at a...
Lancaster University Management School (LUMS)
What is Lancaster University Management School (LUMS)? Established in 1965, Lancaster University Management School (LUMS) is a leading business school located in the North West of England. We are part of Lancaster University, a world-class institution with an excellent reputation for teaching and research. LUMS offers an exceptional range of undergraduate, postgraduate and executive education programmes, all of which are...
Landlord
Being a landlord can be a very profitable business venture, but it also comes with a lot of responsibility. In this blog post, we will explore the benefits and drawbacks of being a landlord, as well as some tips on how to be successful in this field. What is a landlord A landlord is an individual who owns property that is...
Lame Duck
What is a lame duck A lame duck, in finance, is a firm or individual that is no longer able to make sound financial decisions. The term is often used in the context of corporate takeovers. A company that is in the process of being taken over is often referred to as a "lame duck" because its management team is...