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Ladder Strategy
A bond portfolio construction strategy that invests approximately equal amounts in every maturity wi...
Lady Macbeth Strategy
Strategy in which a third party poses as a white knight in a takeover bid, and then joins forces wit...
Laffer Curve
A curve conjecturing that economic output will increase if marginal tax rates are cut. The theory is...
Laffer, Arthur
Arthur Betz Laffer, Sr. (born August 14, 1940) is a US economist who became influential during the R...
Lag
Payment of a financial obligation later than is expected or required, as in lead and lag. Also, the ...
Lag Response Of Prepayments
A delay of typically about three months between the time the weighted-average coupon of an MBS pool ...
Lagging
A strategy used by a firm to stall payments, normally in response to exchange rate projections....
Lagging Indicators
Economic indicators that follow rather than precede the country's overall pace of economic activity....
Laisse-faire
Doctrine that a government should not interfere with business and economic affairs....
Lambda
The ratio of a change in the option price to a small change in the option volatility. It is the part...
Land Contract
A method of real estate financing; a mortgage-holding seller finances a buyer by taking a down payme...
Landlord
A property owner who rents it to another party called a tenant....
Lapse
In insurance terminology, a policy is deemed to have lapsed when the policyholder fails to pay the r...
Lapsed Option
The expiry of an option without being exercised by the holder. In the UK this is known as abandonmen...
Large Cap
One of a trio of terms in common use, the others being 'small cap' and 'mid cap'. Everyone agrees th...
Last In, First Out
An accounting method that fixes the cost of goods sold to the most recent purchases. Hence, if price...
Last Notice Day
The final day on which notices of intent to deliver on futures contracts may be issued....
Last Split
After a stock split, the number of shares distributed for each share held and the date of the distri...
Last Trading Day
The final day under an exchange's rules during which trading may take place in a particular futures ...
Late Charge
A charge imposed by a lender to a borrower when the borrower fails to make payment on the due date....
Late Reported Trade
A term used by the London Stock Exchange to denote that a trade was not reported in accordance with ...
Late Tape
A delay in the display of price changes on the tape of an exchange because of heavy trading. In seve...
Late Trading
Late trading of mutual fund shares occurs when investors placing trades after 4 PM receive the 4 PM ...
Latent Default
A potential default that may have always been present but unidentified....
