Financial Theory Terms

  1. Investment Multiplier

  2. Investment Philosophy

  3. Investment Style

  4. Investment Thesis

  5. Invisible Hand

  6. Irrational Exuberance

  7. Irrelevance Proposition Theorem

  8. Isoquant Curve

  9. Iterated Prisoner's Dilemma

  10. iTraxx LevX Indexes

  11. J-Curve Effect

  12. January Barometer

  13. Jarrow Turnbull Model

  14. Jean-Baptiste Say

  15. Jensen's Measure

  16. Jerry A. Hausman

  17. Jingle Mail

  18. Job Openings and Labor Turnover Survey - JOLTS

  19. John B. Taylor

  20. John Bogle

  21. K-Percent Rule

  22. K-Ratio

  23. Kaizen

  24. Kappa

  25. Karl Marx

  26. Kiasu

  27. Kondratieff Wave

  28. Kondratiev Wave

  29. Kurtosis

  30. Labor Intensive

  31. Labor Theory Of Value

  32. Laissez Faire

  33. Lanchester Strategy

  34. Lattice-Based Model

  35. Law of Diminishing Marginal Returns

  36. Law Of Diminishing Marginal Utility

  37. Law Of Large Numbers

  38. Law Of One Price

  39. Leadership Grid

  40. Least Preferred Coworker Scale

  41. Least Squares Method

  42. Lemons Problem

  43. Level 1 Assets

  44. Leverage Build Up

  45. Leveraged Floater

  46. Leveraged Loan Index - LLI

  47. Liability Driven Investment - LDI

  48. Liability Matching

  49. Licensed International Financial Analyst - LIFA

  50. Life-Cycle Hypothesis (LCH)

  51. Limited Liability

  52. Lindahl Equilibrium

  53. Linear Relationship

  54. Linked Exchange Rate System

  55. Lintner's Model

  56. Liquefied Natural Gas

  57. Liquidity Event

  58. Liquidity Path

  59. Liquidity Premium

  60. Liquidity Ratios

  61. Liquidity Squeeze

  62. Loan Commitment

  63. Log-Normal Distribution

  64. Long Inverse Floating Exempt Receipt - LIFER

  65. Long Run

  66. Long Tail

  67. Longevity Derivatives

  68. Longitudinal Data

  69. Look-Ahead Bias

  70. Loophole

  71. Loose Credit

  72. Lorenz Curve

  73. Loss Psychology

  74. Lucrative

  75. Lump-Sum Payment

  76. Make To Order - MTO

  77. Marginal Rate Of Transformation

  78. Marginal Social Cost - MSC

  79. Marginalism

  80. Market Cycles

  81. Market Discipline

  82. Market Economy

  83. Market Efficiency

  84. Market Letter

  85. Market Power

  86. Market Proxy

  87. Market Psychology

  88. Market Risk

  89. Market Segment

  90. Market Segmentation

  91. Market Segmentation Theory

  92. Market Share

  93. Market Value Added - MVA

  94. Marketing Mix

  95. Markowitz Efficient Set

  96. Martingale System

  97. Marxian Economics

  98. Marxism

  99. Matching Pennies

  100. Mathematical Economics

Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  2. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  3. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  4. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  5. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
  6. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
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