ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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LEHMAN FORMULA Definition
LEHMAN FORMULA is a compensation formula originally developed by investment bankers Lehman Brothers for investment banking services:
- 5% of the first million dollars involved in the transaction for services rendered
- 4% of the second million
- 3% of the third million
- 2% of the fourth million
- 1% of everything thereafter (above $4 million)
NOTE: Most investment bankers now require an additional multiplier to offset inflation.
Learn new Accounting Terms
ACCOUNT CURRENT is a running or continued account between two or more parties, or a statement of the particulars of such an account.
COMMERCIAL LOAN is a short-term business loan usually issued for a term of up to six months.