What Is a Liability Swap? A liability swap is a financial derivative consisting of an interest rate swap (IRS) or currency swap used to change the interest rate exposure or the currency risk exposure assumed by a party to the transaction arising from liability from exposure to a particular interest rate structure or foreign currency
What Is Libel? Libel involves the act of publishing a statement about an individual, either in written form or by broadcast over media platforms such as radio, television, or the Internet, that is untrue and threatens to harm the reputation and/or livelihood of the targeted person. Libel is considered a civil wrong (tort) and can
What Is a Liberalization Clause? A liberalization clause is an insurance policy provision that allows for adjustments to be made to existing coverage in order to comply with changes to relevant laws and regulations. Property insurance is the most likely place to find a liberalization clause. Key Takeaways A liberalization clause is added to some insurance
What Is the London Interbank Bid Rate (LIBID)? The London Interbank Bid Rate (LIBID) is the average interest rate at which major London banks bid for eurocurrency deposits from other banks in the interbank market. It is the bid rate that banks are willing to pay for eurocurrency deposits and other banks’ unsecured funds in the London interbank market, while the more
What Is a Legend? A legend is a statement on a stock certificate noting restrictions on the transfer of the stock. A stock legend is typically put in place due to the requirements established by the Securities and Exchange Commission (SEC) for unregistered securities. A stock legend may or may not be legally required on
What Is Leg Out? Leg out refers to one side of a complex (i.e., multi-leg) options transaction. A leg is a piece of an options strategy known as spreading or a combo, where traders simultaneously buy and sell options on the same underlying security but with different strike prices or different expiration months. This may
What Was Lehman Brothers? Lehman Brothers was a global financial services firm. It provided investment banking, trading, investment management, private banking, research, brokerage, private equity, and associated services. The firm was one of the largest investment banks in the United States until Sept. 15, 2008, when it declared bankruptcy. Its failure was largely caused and
What Is the Lehman Formula? The Lehman formula is a compensation formula developed by Lehman Brothers to determine the commission on investment banking or other business brokering services. Lehman Brothers developed the Lehman Formula, also known as the Lehman Scale Formula, in the 1960s while raising capital for corporate clients. Key Takeaways Lehman Brothers developed
What Is a Lemon? A lemon is a very disappointing investment in which your expected return is not even close to being achieved, and more than likely ends up costing you some or all of the capital committed. Lemon investments can be associated with poor money management, economic factors, financial fraud, or just plain bad
What Are Lemon Laws? Lemon laws are regulations that attempt to protect consumers in the event that they purchase a defective vehicle or other consumer products or services, referred to as lemons, that do not meet their purported quality or usefulness. Lemon laws apply to defects that affect the use, safety, or value of a vehicle
