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Lock
LockUsed in the context of general equities. Make a market both ways (bid and offer) either on the bid, offering, or an in-between price only. RELATED TERMS-------------------------------------- Market 1) The total demand for a good. 2) The set of all actual and potential buyers of a good or service. 3) The place where people buy and sell. 4) The process by which buyers and sellers of goods, services and factors of production interact to determine prices and quantifies. Bid 1) In securities trading this generally describes the stock exchange quote at which demand exists for a security. 2) In currency trading this refers to the quote at which banks purchase currencies. Price The cost of a good or service to the consumer. SIMILAR TERMS-------------------------------------- PREVIOUS AND NEXT TERMS-------------------------------------- Local expectations hypothesis (LEH) Theory that bonds similar in all aspects except maturity will have the same holding-period rate of return. Local expectations theory A form of the pure expectations theory that suggests that the returns on bonds of different maturities will be the same over a short-term investment horizon. Local taxes In the USA, taxes paid by an individual to a local state or county. These are deductible on the person's federal tax return. Location specific advantages Advantages (natural and created) that are available only or primarily in a particular place. Locational arbitrage Attempt to exploit discrepancies in exchange rates between banks. Lock Lock in A specified time period that an investor is locked into an investment. Lock out With PAC bond CMO classes, the period before the PAC sinking fund becomes effective. With multifamily loans, the period of time during which prepayment is prohibited. Lock up CDs CDs that are issued with the tacit understanding that the buyer will not trade the certificate. Lock up option Often used in risk arbitrage to refer to the privilege offered a white knight (friendly acquirer) by a target company to buy crown jewels or additional equity. Lockbox (LIBOR) An international money market interest rate representing the average rate offered by banks for the interbank placements of Eurodollars. We thank you for using the Financial Dictionary to search for Lock. If you have a better definition for Lock than the one presented here, please let us know by making use of the suggest a term option. This definition of Lock may be disputed by other professionals. Our attempt is to provide easy definitions on Lock and any other medical topic for the public at large.
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