Definition of Law of large numbers

Law of large numbers

The mean of a random sample approaches the mean (expected value) of the
population as the sample grows.

Blue-sky laws

State laws covering the issue and trading of securities.

Dividend clawback

With respect to a project financing, an arrangement under which the sponsors of a project
agree to contribute as equity any prior dividends received from the project to the extent necessary to cover
any cash deficiencies.

Law of one price

An economic rule stating that a given security must have the same price regardless of the
means by which one goes about creating that security. This implies that if the payoff of a security can be
synthetically created by a package of other securities, the price of the package and the price of the security
whose payoff it replicates must be equal.

Tax clawback agreement

An agreement to contribute as equity to a project the value of all previously
realized project-related tax benefits not already clawed back to the extent required to cover any cash
deficiency of the project.

law of one price

Theory that prices of goods in all countries should be equal when translated to a common currency.

Goodhart's Law

Whatever measure of the money supply is chosen for application of the monetarist rule will soon begin to misbehave.

Okun's Law

Changes in employment give rise to greater-than-proportional changes in output, by a factor of about 2.5.

Say's Law

Belief that supply creates its own demand.

Financial Numbers Game

The use of creative accounting practices to alter a financial statement
reader's impression of a firm's business performance.

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