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What is landlocked property? In real estate, a landlocked property is one that has no direct access to a public road and can only be reached by crossing neighboring land. Such parcels are effectively “locked” by surrounding properties and lack a public right-of-way. How landlocking happens Common causes: * Subdivision of a larger parcel without…

Land Value Tax (LVT) Key takeaways * A land value tax (LVT) taxes only the value of land, not the buildings or improvements on it. * LVT is an ad valorem tax — levied according to value — that tends to be more stable than taxes that include structures. * Proponents argue LVT is fairer,…

Land Value — Definition and How It’s Determined Definition Land value is the monetary worth of a parcel of real estate, encompassing the intrinsic value of the land itself and any improvements made to it. It differs from site value, which assumes the land is free of leases, mortgages, or other encumbrances that might alter…

Land Trusts: What They Are and How They Work Definition A land trust is a legal arrangement in which a third party (the trustee) holds the legal title to real estate for the benefit of another party (the beneficiary). Land trusts are typically revocable and can be tailored to manage property during an owner’s lifetime,…

Land Contract: What It Is and How It Works A land contract is a seller-financed purchase agreement in which the buyer makes payments directly to the seller over time while the seller retains legal title to the property until the contract is fully paid. It can cover vacant land or property with structures and amenities…

Understanding Land: Definition, Valuation, and Uses in Business Key takeaways Land is a fixed, non-depreciable asset that includes the surface, subsurface resources, and, in many cases, airspace within defined boundaries. Economically, land is a primary factor of production alongside labor and capital. Value depends on location, size, natural resources, improvements, and proximity to amenities and…

What is lambda? Lambda (λ), often called option elasticity or leverage, measures the percentage change in an option’s price for a 1% change in the underlying asset’s price. Put another way, it compares the leverage the option provides relative to holding the underlying security. Formula: λ = (∂C / C) / (∂S / S) =…

Laissez-Faire Laissez-faire is an economic doctrine that advocates minimal government intervention in business and markets. Originating in 18th‑century France, it underpins much of classical free‑market thought: proponents argue that markets, left largely to their own devices, self‑regulate through competition and individual self‑interest, producing greater efficiency and prosperity than centrally directed economies. Key ideas and principles…

Understanding Lagging Indicators: Economics, Business, and Trading A lagging indicator is a metric that reflects changes only after a broader economic, business, or market shift has already occurred. These indicators confirm trends rather than predict them, relying on historical data to validate what has happened. Key takeaways Lagging indicators provide confirmation of past trends but…

Laggard: Meaning, Causes, Risks, and What Investors Should Do Key takeaways * A laggard is a stock (or company) that persistently underperforms its benchmark or peers. * Laggards often get sold first in a portfolio because they lower overall returns. * Cheap share prices can be misleading — low-priced stocks frequently carry higher fundamental and…

Laffer Curve The Laffer Curve illustrates the theoretical relationship between tax rates and government revenue. Popularized by economist Arthur Laffer in the 1970s, it proposes that both very low and very high tax rates can produce low tax receipts, and that there exists an intermediate rate (often labeled T*) that maximizes revenue. Key takeaways Revenue…

Laddering Laddering is an investment strategy that staggers the maturity dates of similar financial instruments—most commonly bonds, certificates of deposit (CDs), or annuities—to create a predictable stream of cash flow, manage interest-rate exposure, and control reinvestment risk. Key takeaways * Fixed-income laddering spreads maturities to reduce interest-rate and reinvestment risk while preserving liquidity. * A…

Understanding Labor Unions Key takeaways * Labor unions are organizations of workers that negotiate with employers over pay, benefits, safety, and working conditions. * Union membership in the U.S. has fallen from a mid-20th-century peak of roughly one-third of the workforce to about 10% today (about 14.4 million members in 2023). * The National Education…

Labor Theory of Value (LTV) Definition The Labor Theory of Value (LTV) holds that a commodity’s value is determined by the amount of labor time socially necessary to produce it. In this view, labor is the common measure of exchange-value among different goods. Historical development Early versions of the idea appear in ancient and medieval…

Labor Productivity Labor productivity measures how much economic output is produced for a given amount of labor. It is a key macroeconomic indicator used to gauge growth, competitiveness, and potential changes in living standards. What it measures Typical measure: real gross domestic product (GDP) per hour worked. Alternative measures: real GDP per worker or output…

Labor Market Flexibility Labor market flexibility describes how easily employers and workers can adjust employment relationships in response to changing economic conditions. It covers hiring and firing, wage setting, working hours, contract types, and workplace rules. Greater flexibility can help firms adapt quickly to demand shifts and economic cycles; stricter regulation and collective bargaining can…

Labor Market: Overview and Key Dynamics What is the labor market? The labor market is where the supply of labor (workers) meets the demand for labor (employers). It determines employment levels, hours worked, and wage rates, and is tightly linked to markets for capital, goods, and services. Understanding both macroeconomic and microeconomic perspectives is essential…

Labor-Intensive Industries: Definition, Characteristics, Examples, and Impact What is labor-intensive? A labor-intensive industry relies heavily on human work rather than capital equipment to produce goods or deliver services. In these industries, labor costs represent a larger share of total costs than capital expenditures. The degree of labor intensity is typically assessed by comparing labor costs…

L Share Annuity Class: Meaning, How It Works, Pros & Cons Overview The L share annuity class is a type of variable annuity designed for investors who want earlier access to their funds. Compared with many other variable annuity share classes, L shares typically have shorter surrender periods (often 3–4 years) but higher ongoing administrative…

Kyoto Protocol — Definition, Mechanisms, Timeline, and Legacy Overview The Kyoto Protocol is an international treaty under the United Nations Framework Convention on Climate Change (UNFCCC) that committed industrialized countries to reduce greenhouse gas (GHG) emissions. Adopted in Kyoto, Japan, in 1997 and entering into force in 2005, it established legally binding emission-reduction targets for…

Kuwaiti Dinar (KWD) The Kuwaiti dinar (KWD) is the national currency of the State of Kuwait. It is divided into 1,000 fils and is notable for being one of the highest-valued currencies relative to the U.S. dollar. Key facts Currency code: KWD Subunit: 1 dinar = 1,000 fils Common nickname: dinar (from the Roman denarius)…

Kurtosis: Definition, Types, and Practical Use What is kurtosis? Kurtosis is a statistical measure that describes the weight of a distribution’s tails relative to its center. In practical terms, it indicates how frequently extreme values (outliers) occur compared with a normal distribution. High kurtosis means fatter tails (more extreme events); low kurtosis means thinner tails…

Kuala Lumpur Stock Exchange (KLSE) — now Bursa Malaysia Key takeaways * The Kuala Lumpur Stock Exchange (KLSE) is the former name of Bursa Malaysia, the principal securities exchange in Malaysia and one of the largest in ASEAN. * Bursa Malaysia operates a fully integrated marketplace offering trading, clearing, listing, depository, and settlement services. *…

KSOP: What it is and how it works A KSOP combines an employee stock ownership plan (ESOP) with a 401(k) into a single qualified retirement plan. Employers match employee 401(k) contributions with company stock instead of cash, creating a vehicle that delivers features of both ESOPs and 401(k)s while reducing the administrative burden of running…

Krugerrands What are Krugerrands? Krugerrands are gold bullion coins first minted by the Republic of South Africa in 1967 to promote South African gold and enable individuals to own physical gold. They are legal tender in South Africa but were never assigned a rand face value; their market value derives solely from the prevailing price…

Korean Composite Stock Price Indexes (KOSPI) What is KOSPI? Korean Composite Stock Price Indexes (KOSPI) are a family of capitalization-weighted indexes that track the performance of stocks listed on the Korea Exchange. Collectively they measure market movements across different segments and industries of the Korean equity market. Although the term KOSPI can refer to the…

Korea Stock Exchange (KRX) Overview The Korea Exchange (KRX) is South Korea’s sole securities exchange operator, formed in 2005 through the merger of the Korea Stock Exchange, the Korea Futures Exchange, and KOSDAQ. Headquartered in Busan with market and oversight offices in Seoul, KRX operates markets for equities, bonds, futures, options, ETFs, and REITs. History…

Korea Investment Corporation (KIC): Overview, Strategy, and Key Facts What is KIC? The Korea Investment Corporation (KIC) is South Korea’s government-owned sovereign wealth fund manager. Established by law in 2005 and funded beginning in 2006, KIC invests national assets to increase long-term wealth and support development of the domestic financial industry. Initial capital came from…

Kondratiev Wave: Meaning, Origins, and Criticism What is a Kondratiev Wave? A Kondratiev Wave (also called K-wave, Kondratieff Wave, supercycle, or long wave) is a proposed long-term (~50-year) cycle in prices and economic activity. Proponents argue these waves reflect alternating periods of broad prosperity and decline driven largely by technological innovation. Explore More Resources ›…

Kondratieff Wave A Kondratieff Wave (or K-wave) is a proposed long-term cycle in capitalist economies lasting roughly 40–60 years. The concept links broad technological and structural change to extended periods of economic expansion and contraction. Key points K-waves are long economic cycles (about 40–60 years) associated with major technological revolutions. Each wave is said to…

KOF Economic Barometer What it is The KOF Economic Barometer is a Swiss leading economic indicator produced by the KOF Swiss Economic Institute (ETH Zurich). It is designed to signal turning points in the Swiss business cycle and to benchmark short-term trends, including employment and GDP growth momentum. Key takeaways Introduced in the 1970s and…

Knuckle-Buster A knuckle-buster is a slang term for a manual credit card imprinter used to record card transactions before electronic point-of-sale (POS) terminals became common. Also called zip-zap machines, they earned the nickname “knuckle-buster” because repeated use could abrade users’ knuckles. How it works The customer’s embossed credit card is placed in a bed in…

Knowledge Process Outsourcing (KPO) Key takeaways * KPO outsources knowledge- and expertise-intensive business functions to external providers with specialized skills. * It’s used to access expertise quickly, reduce costs, and focus internal resources on core activities. * KPO differs from BPO by emphasizing analytical, problem-solving, and domain-specific tasks rather than routine operational work. What is…

Knowledge Engineering: What It Means and How It’s Used Key takeaways * Knowledge engineering is a branch of artificial intelligence that encodes expert problem‑solving into systems that can reach similar conclusions. * Early approaches tried to transfer an expert’s explicit decision steps into software; modern approaches model outcomes without replicating the exact human reasoning path….

Knowledge Economy Key takeaways * The knowledge economy centers on goods and services derived from expertise, intellectual property, and human capital rather than physical inputs. * It depends on skilled labor, education, strong communications infrastructure, and institutions that support innovation. * Intellectual property—patents, copyrights, trade secrets—translates research into commercial value, though many intangible assets are…