Joint Clearing Members Businesses that clear on two or more exchanges. … [Read more...]
Joint Liability
Filed Under: j by
Joint Liability Any obligation that allows two or more parties to share the associated risks inherent in taking additional debt and insulating themselves giants any future legal consequences. Includes obligations to repay debts. … [Read more...]
Jumbo Loan
Filed Under: j by
Jumbo Loan A loan that exceeds a $1 billion sum or a loan that exceeds the limits set by the Federal Reserve for securitization. These loans cannot be guaranteed by Freddie Mac or Fannie Mae. … [Read more...]
Junk Bond
Filed Under: j by
Junk Bond Also called junk or high yield bond. Bond with speculative credit rating of Ba (Moody's) or BB (S&P) or lower. These bonds give higher yields than those of financially sound companies. Both Moody's investor Services and Standard & Poors rate bonds to provide a comparative … [Read more...]
Junior Debt (Subordinate Debt)
Filed Under: j by
Junior Debt (Subordinate Debt) Also refer subordinated debt. A debt that is lower in priority when compared with senior debts as far as repayment is concerned. … [Read more...]
Junior Equity
Filed Under: j by
Junior Equity Equity that ranks lower than other superior forms of equity. Usually refers to common stock that is lower priority than preferred stock. Common stockholders come second after preferred stockholders with respect to claim on dividends announced by the company. … [Read more...]
Just-In-Time Inventory Systems
Filed Under: j by
Just-In-Time Inventory Systems Inventory management systems that schedule the arrival of materials so that it coincides with the need for the material during production. … [Read more...]
K-Percent Rule
Filed Under: k by
K-Percent Rule Macroeconomic money-supply growth theory propounded by Milton Friedman. States that most effective method to control inflation in the long term is for central banks to automatically enhance money supply by a specific limit (the "k" variable) every year, irrespective … [Read more...]
Kappa
Filed Under: k by
Kappa A ratio comparing dollar price fluctuation in the option price to 1% of change in the volatility expected in price. … [Read more...]
Keefe Bank Index
Filed Under: k by
Keefe Bank Index Index, compiled by investment bankers Keefe, Keefe, Bruyette and Woods, listing regional bank and money centers. The banks included here are weighted in terms of capitalization. … [Read more...]
Keiretsu
Filed Under: k by
Keiretsu A corporate network comprising of Japanese businesses with a major bank at the centre. … [Read more...]
Law of Large Numbers
Filed Under: l by
Law of Large Numbers Theory suggesting that any random sample’s mean value gravitates towards the mean or expected value of the population with increasing sample size. … [Read more...]
L-Shaped Recovery
Filed Under: l by
L-Shaped Recovery Pattern seen in recession and recovery in the economy that resembles an "L" when charted. Denotes the trend followed by economic measures, such as GDP, employment, and production. The L-shaped recovery signifies a sharp fall in these parameters followed by … [Read more...]
Ladder Strategy
Filed Under: l by
Ladder Strategy Strategy used with bond portfolios where the investments are designed so that similar amounts are invested within a specific range in every term of maturity. … [Read more...]
Lag
Filed Under: l by
Lag Opposite of Lead. Payment with respect to a financial obligation at a date later than its actual due date or expected date of payment. Also used in regression analysis. Represents the number of periods or phases that the independent variable is "held back" so as to predict the … [Read more...]
Lag Response of Prepayments
Filed Under: l by
Lag Response of Prepayments Usually there is a three month lag between the date that the weighted average coupon of an Mortgage Based Security pool has exceeded the refinancing and the actual time when prepayment speed accelerates visibly. … [Read more...]
Land Value Tax- LVT
Filed Under: l by
Land Value Tax- LVT The amount of tax payable on valuation of land. A component of real estate property tax. LVT takes the fair value of the land into consideration. … [Read more...]
Lambda
Filed Under: l by
Lambda The change as denoted by a ratio, in the price of an option to a small fluctuation in the volatility of the option. Can be described as a partial derivative of the price with respect to the volatility of the option. … [Read more...]
Last Split
Filed Under: l by
Last Split The number of shares distributed for each share held after a stock split and the distribution date. … [Read more...]
Last Trading Day
Filed Under: l by
Last Trading Day The last day under the rules of an exchange when trading can be done in a given options or futures contract. Any contracts unsettled at the end of this day should be settled or fulfilled by physical delivery of underlying commodities or instruments, or by monetary … [Read more...]
