What Is a Labor Union? A labor union is an organization formed by workers in a particular trade, industry, or company for the purpose of improving pay, benefits, and working conditions. Officially known as a “labor organization,” and also called a “trade union” or a “workers union,” a labor union selects representatives to negotiate with
What Is Laddering? In finance, the term laddering is used in a variety of ways depending on the industry. Its two most common usages relate to retirement planning and the underwriting of new securities issues. Generally, laddering is used to describe different investing strategies that aim to produce steady cash flow by deliberately planning investments
What Is a Ladder Option? A ladder option is an exotic option that locks in partial profits once the underlying asset reaches predetermined price levels or “rungs.” This guarantees at least some profit, even if the underlying asset retraces beyond these levels before the option expires. Ladder options come in put and call varieties. Do
What Is a Lady Macbeth Strategy? A Lady Macbeth strategy is a corporate takeover scheme in which a third party poses as a white knight to gain trust, only to then turn around and join forces with the unfriendly party in a hostile takeover bid. Behind the scenes, the hostile bidder and supposed white knight to
What Is the Laffer Curve? The Laffer Curve is based on a theory by supply-side economist Arthur Laffer. Created in 1974, it visually shows the relationship between tax rates and the amount of tax revenue collected by governments. The curve is often used to illustrate the argument that cutting tax rates can result in increased
What Is a Laggard? A laggard is a stock or security that is underperforming relative to its benchmark or peers. A laggard will have lower-than-average returns compared to the market. A laggard is the opposite of a leader. Key Takeaways A laggard underperforms its benchmark, in terms of an investment’s returns.If an investor holds laggards in
What are Lagged Reserves? Lagged reserves is a method to calculate the required level of bank reserves kept on hand or with a Federal Reserve bank. The required reserve amount is based on the value of the bank’s demand deposit accounts from the previous two weeks. Key Takeaways Lagged reserves refers to a method that
What Is Laissez-Faire? Laissez-faire is an economic theory from the 18th century that opposed any government intervention in business affairs. The driving principle behind laissez-faire, a French term that translates to “leave alone” (literally, “let you do”), is that the less the government is involved in the economy, the better off business will be, and
Lakshmi N. Mittal is executive chairman of ArcelorMittal, the world’s largest steel and mining manufacturer. He previously served as chief executive officer of ArcelorMittal. One of the world’s prominent billionaires, Mittal is known as a global businessman who serves on the boards of various advisory councils, and as a philanthropist engaged in the fields of
What Is a Keogh Plan? A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes. A Keogh plan can be set up as either a defined-benefit plan or a defined-contribution plan, though most plans are set as the latter. Contributions are generally tax-deductible up to a certain
