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Lehman Formula

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Lehman Formula
A compensation formula developed by Lehman Brothers for investment banking services.
    
The Lehman Formula is a formula to define the compensation a Broker should receive when handling a large transaction for a client. The formula usually applies to the entire value of the transaction. The Lehman Formula is only used when a large investment is made with an investment bank or institutional Broker. It is used in two different ways, either counting each million dollars of value separately, or all at one time.
Posted by  marcus evans (Europe) Ltd
 
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