What Is a Letter of Intent (LOI)? A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between
What is Letters Patent? Letters patent is a type of legal instrument, in the form of a published written order, issued by a governing power, such a king, president, head of state or corporation, that gives a patentee an exclusive right or privilege. Key Takeaways Letters patent is a type of legal instrument, in the
What Are Level 1 Assets? Level 1 assets include listed stocks, bonds, funds, or any assets that have a regular mark-to-market mechanism for setting a fair market value. These assets are considered to have a readily observable, transparent prices, and therefore a reliable fair market value. Level 1 assets are liquids financial assets and liabilities
What Is Level 2 First introduced in 1983 as the Nasdaq Quotation Dissemination Service (NQDS), Level 2 is a subscription-based service that provides real-time access to the NASDAQ order book. It is intended to display market depth and momentum to traders and investors. The service provides price quotes from market makers registered in every NASDAQ-listed and
What Is a Level 2 Asset? Level 2 assets are financial assets and liabilities that are difficult to value. Although a fair value can be determined based on other data values or market prices, these assets do not have regular market pricing. Level 2 asset values, sometimes called “mark-to-model” assets, can be closely approximated using simple models
What Are Level 3 Assets? Level 3 assets are financial assets and liabilities considered to be the most illiquid and hardest to value. They are not traded frequently, so it is difficult to give them a reliable and accurate market price. A fair value for these assets cannot be determined by using readily observable inputs or
What Is a Level Death Benefit? A level death benefit is a payout from a life insurance policy that is the same regardless of whether the insured person dies shortly after purchasing the policy or many years later. It can be contrasted with an increasing death benefit, which rises in value over time as the
What Is Lean Enterprise? Lean enterprise refers to a production principle stating that any component of a business enterprise that fails to directly benefit a final product is superfluous. Lean enterprise focuses on value creation while eliminating waste and non-essential processes. The most valuable elements of a product or a service are largely decided by
What Is Lean Six Sigma? Lean Six Sigma is a team-focused managerial approach that seeks to improve performance by eliminating resource waste and defects. It combines Six Sigma methods and tools with the lean manufacturing/lean enterprise philosophy. It strives to eliminate the waste of physical resources, time, effort, and talent while assuring quality in production
What Are Long-Term Equity Anticipation Securities (LEAPS)? The term long-term equity anticipation securities (LEAPS) refers to publicly traded options contracts with expiration dates that are longer than one year, and typically up to three years from issue. They are functionally identical to most other listed options, except with longer times until expiration. A LEAPS contract
