LABOR FORCE. Workers. U.S. Department of Commerce labor force statistics include employed and unemployed persons sixteen years old or older who either have jobs or are actively looking for and available for employment.

LABOR-INTENSIVE. Production method requiring many workers relative to other inputs.

LADDERING. Investment strategy of owning a series of bonds of staggered durations, in order to reduce the risk associated with changing interest rates.

LAFFER CURVE. 1980s economic idea, espoused by Arthur Laffer, suggesting that lowering marginal tax rates stimulates increases in output thereby increasing government tax revenue. See also SUPPLYSIDE ECONOMICS, DYNAMIC SCORING.

LAISSEZ-FAIRE. Hands off, to let be free (French). Laissez-faire economic doctrine was advocated by Adam Smith in The Wealth of Nations (1776). Conservatives in the United States have latched on to the term as a symbol for reducing government influence in the economy.

LAME DUCK. Politician who is still in office but who has announced retirement or has been defeated in a recent election. The term originated

in Britain in the eighteenth century, when it meant a bankrupt businessman.

LARGE CAP. A company with a market capitalization of more than $500 million.

LARGE SCALE. Big picture; broader view.

LAST IN, FIRST OUT (LIFO). A method of assigning cost to the ending inventory which assumes that the cost of the remaining units consists of the costs of the earliest units purchased.

LAST STRAW. Mistake or problem that causes a manager to take action.

“Even Green Street's Mr. [John Lutzius] sees only a 10% upside in the share price near term. And some analysts estimate that Crescent's 2004 adjusted earnings will fall between $25 million to $50 million short of covering the dividend at current levels of $175 million annually. The company is covering it through land sales. Another dividend cut would be the last straw for investors, ‘a kiss of death,’ says Dave Copp, a real-estate analyst with RBC Capital Markets.” (Wall Street Journal, Dec. 26, 2003, p. C3)

LAUNDER (TO). Put illegal funds through a legitimate business, thereby cleaning the money of its “dirty” origin.

“The mini-crisis has refocused attention on the institutional weakness of Russia's banking system, which increasingly has become a bottleneck as Russia's economy rebounds. Many of the country's 1,300 banks are small and undercapitalized, and some do little more than launder money and channel cash offshore.” (Wall Street Journal, July 12, 2004, p. A15)

LAY CARDS ON THE TABLE (to). To show all the facts, to be totally honest.

LAY DOWN ON THE JOB (to). To be unproductive; to loaf.

LAYAWAY. Purchased on an installment plan with the product kept in storage at the store until the buyer has made full payment.

LAYING-OFF. Terminating workers because there is no work.

LAYUP. Something that is easily accomplished (basketball).

LEAD BALLOON. A dismal failure.

“Much of the dissent heard here focused more on the U.S. government than on U.S. corporations. The president's State of the Union address, which played well in U.S. living rooms, fell on this crowd ‘like a lead balloon,’ observed one GOP member of Congress in attendance.” (Wall Street Journal, Feb. 4, 2002, p. A1)

LEAD TIME. Time between the initiation of a new project and its delivery date.

“‘Since we had no idea when the auction would be, it would have been impossible, with our lead time, to time that.’ Playboy told Google in advance when the article would run, Mr. Randall says.” (Wall Street Journal, August 18, 2004, p. A1)

LEAPFROG (TO). Bound forward. Employees climbing the CORPORATE LADDER sometimes leapfrog past others on the way to the top.

“Boeing Co., Lockheed Martin Corp. and Northrop Grumman Corp. are among those that have bet heavily on Defense Secretary Donald Rumsfeld's vision of ‘transformation,’ which aims to leapfrog today's weaponry to a higher plane of technology, speed, lethality and communication among all the armed services.” (Wall Street Journal, July 26, 2004, p. B6)

LEAPS AND BOUNDS. Large jumps, amounts, or quantities.

“A technological shift is underway that advances search quality by leaps and bounds. By leveraging the wealth of information around employees' interactions with content, the searcher is empowered to find precisely the information he needs.” (Information Today, Jul/Aug 2004, p. 22)

LEAP TO NEW HEIGHTS (TO). Attain levels never before reached.

“In February 1995, South Korea's Citizen National Bank changed its name to Kookmin Bank and adopted a new logo, a multicolored stick-man in a shape reminiscent of the ginseng root, which many Koreans believe has energizing, even aphrodisiac, qualities. Management may have chosen the logo to inspire the inefficient government-owned bank to leap to new heights of financial activity.” (Euromoney, April, 1995, p. 20)

LEARNING ORGANIZATION. A company that values intelligence and initiative by personnel to continually improve their skills.

LEAVE IN THE DUST (TO). Leave behind; defeat one’s competitor.

LEFT-BRAIN PERSON. A person with strong organizational and mathematical skills; someone obsessed with order.

LEFT FIELD (FROM). Out of nowhere, a total surprise (baseball).

LEFT-HANDED COMPLIMENT. Praise that is in fact subtle dispraise.

LEG UP (to have a). To have an advantage, sometimes derived through unethical or illegal activities.

“Money managers who make campaign contributions to officials who head public pension funds have received an unfair leg up on other firms competing to manage the retirement money of municipal and state employees.” (Wall Street Journal, December 17, 1999, p. C1)

LEGAL EAGLE. Clever lawyer.

LEGAL MACHINE. The legal system; a machine meeting legal standards.

LEMON. A defective product, especially a car. Lemon laws in the United States typically allow a manufacturer four attempts to fix a recurring problem.

“A Lemon of a Loan. Leading Italian banks face possible losses stemming from a 3-billion-euro loan to Fiat SpA.” (Wall Street Journal, May 26, 2004, p. C3)

LEMON LAW. Laws, mostly associated with automobiles, that require companies to replace products if they cannot fix them.

LENDER OF LAST RESORT. Any government agency that provides loans to borrowers who have exhausted other options. The Small Business Administration and the Federal Reserve act as lenders of last resort to their markets.

LESS THAN TRUCKLOAD (LTL). Transportation prices are usually quoted for full loads and LTL shipments.

LET SLIDE (TO). Ignore; not criticize.

“The modus operandi in the 16 trades that the SEC let slide followed the same pattern of the 11 trades for which the commission extracted the settlement, Mr. [Kevin Marino] says.” (Wall Street Journal, Oct. 20, 2001, p. C1)

LEVEL (PLAYING) FIELD. Everyone being treated the same (sports).

“The bourse originally planned to make the rules compulsory for its Neuer Market segment. But now compliance will be on a voluntary or ‘best practice’ basis to ensure a level field for all IPOs in all segments.” (Wall Street Journal, June 11, 2002, p. C18)

LEVERAGE (TO). Use borrowed funds to make an investment; the ratio of borrowed funds to invested capital in a business; influence.

“Many aim to emulate Samsung Electronics Co. of South Korea, using sharp design to leverage their contract manufacturing business into a global brand.” (Wall Street Journal, September 1, 2004, p. A10)

LEVERAGED BUYOUT (LBO). The purchase of a company with borrowed funds.

“Leveraged-buyout firm Thomas H. Lee Partners acquired a majority stake in futures brokerage firm Refco Group in a deal valuing the firm at $2.25 billion. Both sides described the transaction as the latest offshoot of the broader boom in futures trading.” (Wall Street Journal, June 9, 2004, p. C5)

LEVITTOWN. Suburbia; specifically, a town on Long Island, New York, built by Arthur Levitt as the first mass-produced suburban housing constructed to meet consumer needs after World War II.

“Michael O'Young pitched management at Far East Consortium International with the idea of introducing single-family housing to Shanghai, a sort of Levittown of the Far East.” (Forbes, Oct 16, 2000, p. 172)

LICK AND A PROMISE (GIVE IT A). Quick and not thorough.

LIE DOWN ON THE JOB (TO). Not be productive.

LIFELONG STUDENT. Someone who is always learning.

LIGHTNING ROD. Person who initiates change, particularly dramatic and potentially dangerous changes in an organization.

“Mr. [Jeffrey C. Barbakow]'s compensation has been a lightning rod for criticism of Tenet since its troubles emerged in November 2002.” (Wall Street Journal, April 6, 2004, p. B1)

LIKE A MILLION BUCKS. Very good.

LIKE AN EDSEL. A failure. Ford Motor Company introduced the Edsel with great fanfare in the 1950s. The car, which was based on out-of-date research and contained gimmicks rather than added value for consumers, was a dismal failure.

LIMIT ORDER. An order to buy or sell a stock at a specific price.

LINE. Profession; products one sells.

LINE OF CREDIT. A guarantee that a lender will provide up to a specified amount of credit to a company during a specified period of time.

LINE UP THE BULLETS. Make a list of the issues or problems.

LINGO. Slang.

“Fund companies' lust for assets also underlies the sales abuses involving mutual-fund B shares. In the late 1980s, most funds either were sold through brokers and charged a large upfront commission or they were offered directly to investors without a ‘load,’ as sales commissions are known in mutual-fund lingo.” (Wall Street Journal, Aug. 1, 2004, p. 3)

LION’S SHARE. Largest part.

“Still, with the lion's share of the company's sales in products like traditional Oreos and Maxwell House coffee, Mr. Deromedi also defended Kraft's existing lineup.” (Wall Street Journal, May 21, 2004, p. A1)

LIP SERVICE. Officially agreeing with, while having private reservations about the issue.

“Central bankers and finance ministers may pay lip service to ‘stability,’ but when they go home they conduct monetary policy with an eye to what they see as the ‘national interest’ and the dictates of domestic politics.” (Wall Street Journal, Feb. 10, 2004, p. A17)

LIPSTICK BOARD. Plastic surface on which advertising messages are written.

LIQUID. Easily converted to cash.

“MTS said the trades involved 200 instruments on EuroMTS, where the most ‘liquid,’ or easy-to-trade, euro-zone government bonds are traded, and other MTS markets in Europe.” (Wall Street Journal, Aug. 19, 2004, p. C3)

LITMUS TEST. Basis for determining (chemistry).

“Analysts view the budget for the fiscal year ending March 31, to be announced tomorrow, as a litmus test of how Mr. Singh intends to balance market-opening policies that have driven India's rapid economic growth with a commitment to help the rural and working-class voters who backed the Congress-led coalition.” (Wall Street Journal, July 7, 2004, p. A8)

LITTLE GUY. Small investor; low-level employee.

“How shocking to find liberal activists involved in the misrepresentation of financial figures, crony capitalism and sticking it to the little guys by allowing them to work without pay and without air conditioning.” (Wall Street Journal, July 8, 2004, p. A15)

LIVELIHOOD. Job, how one earns one’s living.

LIVING ON BORROWED TIME. Being in a situation about to fail.

“Jakarta, Indonesia -- It was once Southeast Asia's tallest hotel and Indonesia's finest. Now, it's a shabby, unfashionable hostelry living on borrowed time.” (Wall Street Journal, Aug. 28, 2004, p. 1)

LIVING DEAD. A company or investment that is not successful but not in bankruptcy proceedings, but may soon be so.

LIVING PROOF. Actual evidence.

“Andrew Tomkins, Bob Carlson and the Web Fountain EBO are living proof of the big, new payoff IBM is getting from throwing open the doors of its vaunted research labs and turning its scientists loose in the marketplace.” (Fortune, June 9, 2003. p. 133)

LOAD. Sales charge associated with the purchase of a mutual fund.

LOADED. Very rich; fully equipped.

LOADED GUN. Something that could dramatically change an existing situation for the worse. A loaded gun can be used to threaten or influence a decision.

LOADING THE BOSS’S PISTOL. A list of issues or problems often organized by the VP for finance.

LOAN-TO-VALUE RATIO (LTV). The ratio of the amount of money borrowed to the fair market value of the asset against which the loan is secured.

LOCAL AREA NETWORK (LAN). Group of computers that are linked together.

LOCKED AND LOADED. Ready to use. From the military term for a rifle ready to be fired.

LOCKED INTO. Forced to stay with, having no other option.

LOCK HORNS (TO). Disagree.

“This week, creditors of the country's biggest credit-card issuer, LG Card, continued to lock horns with the state-run Korea Development Bank (KDB) over the terms of a proposed bail-out.” (The Economist, Jan. 10, 2004, p. 65)

LOCK, STOCK, AND BARREL. Everything.

“Coram's Chapter 11 bankruptcy plan, if accepted by the bankruptcy court, would give the company, lock, stock and barrel, to the debt holders. And they want it.” (Forbes, Oct. 30, 2000, p. 86)

LOCK UP (TO). Complete, finalize, gain control of.

LOCK-UP PERIOD. Typically, a 180 day period following an initial public offering when officers of a company are barred from selling shares of stock.

“LECG, a provider of expert services, fell 1.58, or 9%, to 16, after a lock-up period expired, enabling insiders to sell shares for the first time since the Emeryville, Calif., company's initial public offering six months ago.” (Wall Street Journal, May 13, 2004, p. C4)

LOG (TO). Official records; to record.

LOMBARD. An acronym for “Lots of Money but a Real Dodo.” A wealthy, simple person.

LOMBARD FACILITY. Name for the discount window lending practice by the Federal Reserve to member banks for short-term loans to meet reserve requirements.

“Yesterday, the Bundesbank slashed its discount rate to 3.5% from 4% and its Lombard rate to 5.5% from 6%, the lowest level since January 1989. The two rates, which set the lower and upper limits for Germany's money market, were last cut in March. Germany's discount rate offers banks a limited amount of inexpensive refinancing under fixed borrowing quotas. Borrowing from the Lombard facility is unlimited and serves as a ceiling for short-term money-market rates.” (Wall Street Journal, Aug. 25, 1995, p. A2)

LONDON INTERBANK OFFERED RATE (LIBOR). The interest rate charged to highest-quality customers for loans in the Eurodollar market. Less creditworthy customers pay the LIBOR rate plus varying percentage points. Like the PRIME RATE in the United States, the LIBOR is the standard by which interest rates are established.

LONELY AT THE TOP. The price of leadership may be a lack of friends.

LONG BOND. Thirty-year U.S. Treasury bond.

LONG ON (TO BE). Supportive of; to own a financial interest in; to lengthen.

“Going Long on Your Loan Some of the various lenders that offer vehicle loans stretching six years or more.” (Wall Street Journal, Sept. 30, 2003. p. D1)

LONG RUN. Time frame in which all inputs are variable.

LONG SHOT. Something that has a low percentage chance of being successful.

LONG-TAIL BUSINESS. Insurance jargon for hard-to-predict, long-term liabilities.

“This makes almost all the insurance companies with so-called long-tail business-insurance for something like medical malpractice that requires uncertain payout years down the line-unappealing.” (Wall Street Journal, February 5, 2003, p. C1)

LOOKS GOOD ON PAPER. Something that appears to have potential but is untested.

LOOPHOLE. Legal way to get around the law.

“‘They were actually proud of how cunning and sly they were in getting around the rules,’ says Mr. Lawson of the Malaysian and Singaporean timber dealers he met. The traders described how they easily exploited loopholes in Malaysian export rules.” (Wall Street Journal, Aug. 4, 2004, p. 1)

LOOSE CANNON. An uncontrollable person (nautical).

“On the other hand, Mr. Toledo is a relative newcomer, whose emotional declarations in the tense days following the first vote made him look to many analysts like more of a loose cannon than a statesman.” (Wall Street Journal, May 11, 2000, p. A18)

LOOSE CREDIT. Federal Reserve policy of lowering interest rates making credit more available.

LOOSE ENDS. Unsettled business issues or details.

LOOT. Money.

“Mr. Rogers has been famous in financial circles for so long that some might be tempted to believe he was born famous. In fact, as a youngster he helped launch George Soros's Quantum Fund, then retired in 1980 with a bundle of loot.” (Wall Street Journal, May 30, 2003, p. W10)

LOSE ONE’S SHIRT (TO). Lose a significant amount of money.

“Mitsubishi had to lose its shirt to be persuaded to ‘retool’ its sales pitch to a more ‘mature’ buyer.” (Wall Street Journal, Dec. 19, 2003, p. W15)

LOSS LEADERS. Products offered at very low prices to attract customers.

“For companies such as Nike and Adidas, however, breakout sales of an Olympic-related line are only part of the longterm goal. ‘You justify it as a loss leader,’ says the Warsaw Center's Mr. Swangard of the Olympics efforts. ‘I'm not sure the next billionaire category will come off the pole vault runway. But you still want to be authentic to your brand, and that means you would help any athlete, even if it's a small-market niche.’" (Wall Street Journal, Aug. 27, 2004, p. B1)

LOTTERY EFFECT. Stock market strategy of buying stocks that have fallen significantly in price hoping the stock will surge again.

“Part of the lottery-effect thing is people are looking at the stock price now and thinking it was once [at] that humongous price, maybe it will reach there again.” (Wall Street Journal, August 28, 2002, p. C2)

LOW-BALL (TO). Reduce, as in a bid; a very low estimate.

“Mr. Mehta, whose portfolio includes about $5 million in stocks, once planned to bid for several thousand Google shares. Now he is wavering, considering a low-ball bid of $60 to $65 a share -- a level he thinks won't win him any Google shares in the auction.” (Wall Street Journal, Aug. 9, 2004, p. C1)

LOW-END. Lowest priced. See also TOP-OF-THE LINE.

“The auction -- and the intense spotlight on Google's every move -- have spawned multiple strategies by investors. Barry Randall, portfolio manager of the First American Technology fund in Minneapolis, said he bid for shares at a price ‘materially lower’ than Google's $108 low-end estimate.” (Wall Street Journal, Aug. 16, 2004, p. C1)

LOW MAN/WOMAN ON THE TOTEM POLE. Lowest position in an organization (offensive to Native Americans).

LUDDITES. Workers who feel their jobs are threatened by changing technology. The original Luddites, early 1800s British craftsmen, were followers of the mythic figure, Ned Ludd. They rioted, destroying textile machines that had replaced them.

“A quarter of all Americans now work in jobs that weren't listed in the Census Bureau's occupation codes in 1967. Technophobes, neo- Luddites, and antiglobalists be warned: You're on the wrong side of history. You see only the loss of old jobs. You're overlooking all the new ones.” (Wall Street Journal, Dec. 26, 2003, p. A10)

LUMP SUM. One-time payment.

“Taking Stock-- Strategy: If you hold company stock in your 401(k) and retire or change jobs, gains will be taxed at the lower capital-gains rate if you take the shares as a lump-sum distribution.” (Wall Street Journal, Aug. 18, 2004, p. D1)