What Is a Lender? A lender is an individual, a group (public or private), or a financial institution that makes funds available to a person or business with the expectation that the funds will be repaid. Repayment will include the payment of any interest or fees. Repayment may occur in increments (as in a monthly mortgage payment)
What Is Lender of Last Resort? A lender of last resort (LoR) is an institution, usually a country’s central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse. In the United States, the Federal Reserve acts as the lender of last
What Is a Leprechaun Leader? A leprechaun leader is a derogatory term for a corporate manager or an executive who, like the fabled Irish elf, is a mischievous and elusive creature said to possess buried treasure of money and gold. In the case of a leprechaun leader, an executive or other corporate leader embezzles money
What Is Leptokurtic? Leptokurtic distributions are statistical distributions with kurtosis greater than three. It can be described as having a wider or flatter shape with fatter tails resulting in a greater chance of extreme positive or negative events. It is one of three major categories found in kurtosis analysis. Its other two counterparts are mesokurtic
What Is a Lessor? A lessor is essentially someone who grants a lease to someone else. As such, a lessor is the owner of an asset that is leased under an agreement to a lessee. The lessee makes a one-time payment or a series of periodic payments to the lessor in return for the use
What Is a Letter of Comfort? A letter of comfort—also known as a letter of intent or a solvency opinion—is a written document that provides a level of assurance that an obligation will ultimately be met. In its traditional context, a letter of comfort is given to organizations or persons of interest by external auditors regarding statutory
What Is a Letter of Comment? A letter of comment—or a comment letter—is a document from the Securities and Exchange Commission (SEC) that is sent to a company in response to filing its registration statement, known formally as its Form S-1. Key Takeaways A letter of comment is a response to a company’s SEC Form
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
