{"id":1910,"date":"2019-02-05T10:38:43","date_gmt":"2019-02-05T10:38:43","guid":{"rendered":"https:\/\/student.multisite.legal500.com\/?page_id=1910"},"modified":"2024-06-18T15:24:33","modified_gmt":"2024-06-18T15:24:33","slug":"the-legal-market-an-a-z-guide","status":"publish","type":"page","link":"https:\/\/my.legal500.com\/future-lawyers\/career-clinic\/the-legal-market-an-a-z-guide\/","title":{"rendered":"The legal market: An A-Z Guide"},"content":{"rendered":"
\n

If you\u2019re planning on becoming a lawyer it\u2019s best that you get to grips with the relevant jargon. It will soon become second nature and none of it is particularly difficult, but it\u2019s still worth swotting up ahead of an interview to avoid being stumped by any unforeseen acronyms.<\/p>\n<\/div>\n

\n

A<\/h2>\n

ABS (Alternative Business Structure)<\/strong>\u00a0\u2013 The model by which non-law companies are able to invest in law firms and provide legal services, following the implementation of the Legal Services Act 2007.<\/p>\n

Antitrust<\/strong> \u2013 Known more commonly as competition law in the uk, these are laws to discourage anti-competitive behaviour among companies, such as monopolies, cartels and restrictive practices. The term originates from the US, where cartels formed \u2018trusts\u2019 in order to bully smaller companies.<\/p>\n

Arbitration v Mediation v Litigation<\/strong> \u2013 All are methods of resolving disputes, therefore known collectively as Dispute Resolution. Only litigation involves going to court. Arbitration is an attempt to reach agreement (arbitration agreement) using an umpire and is legally binding. Mediation is a less formal, voluntary process and there is no legally-binding outcome.<\/p>\n

Associate v Assistant<\/strong> \u2013 Both are qualified solicitors who have not yet been elevated to the firm\u2019s partnership.<\/p>\n

B<\/h2>\n

Bench<\/strong>\u00a0\u2013 The judges or magistrates in a court.<\/p>\n

Best Friends<\/strong>\u00a0\u2013 Law firms with no formal links or financial ties but who give each other first preference when referring work. Usually an international arrangement between firms in different jurisdictions.<\/p>\n

Billable hours<\/strong> \u2013 Also known as chargeable time, this is the legal work\u00a0 that can justifiably be charged to the client. This would not include redrafting a document chewed in the photocopier!<\/p>\n

Brief<\/strong>\u00a0\u2013 The document of instructions from a solicitor to a barrister. Includes facts of the case and outlines what the solicitor would like the barrister do to.<\/p>\n

Bond<\/strong>\u00a0\u2013 Similar to a loan, the bond is an IOU issued by a company or government in return for money provided by investors (bondholders). One of many methods of raising capital, it is a form of debt.<\/p>\n

C<\/h2>\n

CSR (Corporate Social Responsibility)<\/strong> \u2013 How firms manage their business processes to produce an overall positive impact on society through areas such as environmental impact management, corporate governance, diversity and the way in which the firm responds to the needs of the wider community. CSR initiatives could include reading schemes at school or charity fundraising activities.<\/p>\n

Called to the Bar<\/strong>\u00a0\u2013 The ceremony whereby members of the Inns of Court become qualified barristers.<\/p>\n

Chambers<\/strong>\u00a0\u2013 The rooms (offices) occupied by a group of barristers who share overheads.<\/p>\n

Counsel<\/strong>\u00a0\u2013 Another term for barrister.<\/p>\n

D<\/h2>\n

Data room<\/strong>\u00a0\u2013 A room set up during a corporate transaction where the purchaser\u2019s advisers can conduct due diligence on the target company\u2019s accounts and activities.<\/p>\n

Debt<\/strong>\u00a0\u2013 Money borrowed by companies, such as loans or bonds.<\/p>\n

Derivatives<\/strong>\u00a0\u2013 A spin-off of financial products such as shares or bonds. Derivatives include futures and options.<\/p>\n

Due diligence<\/strong>\u00a0\u2013 The detailed study of information about a company, such as its accounts and activities, prior to an acquisition or take-over.<\/p>\n

E<\/h2>\n

Equity<\/strong>\u00a0\u2013 Shares in a company.<\/p>\n

Equity partner v Non-equity partner<\/strong>\u00a0\u2013 Equity partners collectively own the firm because they have bought a share of the business and therefore receive a cut of the profits. Non-equity partners have been professionally promoted but have not yet bought a share in the business and receive only a salary.<\/p>\n

F<\/h2>\n

Fee-earner<\/strong>\u00a0\u2013 Anyone who conducts legal work that can be charged to a client. Includes trainees, paralegals and legal executives, but not secretaries.<\/p>\n

Firm<\/strong>\u00a0\u2013 A business model comprising a partnership of individuals (partners). Contrasts with a company comprising directors, executives and a chairman. Most law businesses are firms rather than companies. Increasingly, many are becoming LLPs (see below).<\/p>\n

Flotation<\/strong>\u00a0\u2013 The admission of a new company to a stock exchange, so that its shares can be traded publicly. See IPO.<\/p>\n

H<\/h2>\n

Hostile bid<\/strong>\u00a0\u2013 An attempt to acquire a company without the approval of the target\u2019s shareholders\/owners.<\/p>\n

I<\/h2>\n

IPO (Initial Public Offering)<\/strong>\u00a0\u2013 The offer of a company\u2019s shares on a stock market. Also known as a flotation, it occurs when the privately owned shares in a company become publicly traded for the first time.<\/p>\n

In-house lawyer<\/strong>\u00a0\u2013 A solicitor (or sometimes, a barrister) working for a company or public body instead of a law firm or set of chambers.<\/p>\n

Inns of Court<\/strong>\u00a0\u2013 Four administrative bodies within the Bar \u2013 Inner Temple, Middle Temple, Gray\u2019s Inn and Lincoln\u2019s Inn. Each barrister and student barrister must belong to one.<\/p>\n

IP (Intellectual Property)<\/strong>\u00a0\u2013 An umbrella term covering copyright, patent and trade mark law. An area of the law which serves to protect a company or individual\u2019s products or work from unauthorised use.<\/p>\n

J<\/h2>\n

Junior<\/strong>\u00a0\u2013 How you will feel for much of your training contract! Also, the secondary barrister at trial, i.e. Senior\/Lead counsel and Junior counsel (see L below).<\/p>\n

L<\/h2>\n

LLP<\/strong>\u00a0\u2013 A halfway house between a partnership and a limited company. Limits the partners\u2019 personal liability in the event of debt.<\/p>\n

Lead counsel v Junior counsel<\/strong>\u00a0\u2013 Lead counsel is the barrister who leads the advocacy in court, i.e. makes the opening speech, often a QC (see below). The junior assists with the case and advocacy and, despite the name, is also very experienced.<\/p>\n

Legal Services Act 2007<\/strong>\u00a0\u2013 An Act of Parliament that liberalises the market for legal services in England and Wales. Implemented in 2011, the act allows non-lawyers to own and operate law firms for the first time (see \u2018Alternative Business Structures\u2019), and enables companies such as banks and even supermarkets to provide legal advice in some areas, such as wills and conveyancing.<\/p>\n

Lockstep<\/strong>\u00a0\u2013 The different pay levels awarded to partners, dependent on years of service rather than legal ability. Contrasts with the US system of \u2018eat what you kill\u2019, where pay is equated to number of hours billed.<\/p>\n

M<\/h2>\n

M&A (Mergers and acquisitions)<\/a><\/strong>\u00a0\u2013 The area of legal practice specialising in advising companies on merging with, or buying, other companies. Comprises the bulk of corporate work.<\/p>\n

Magic Circle<\/strong>\u00a0\u2013 Colloquial term referring to five UK law firms that have historically led the market in terms of corporate work, size and profits \u2013 Allen & Overy LLP; Clifford Chance LLP; Freshfields Bruckhaus Deringer; Linklaters; Slaughter and May.<\/p>\n

Managing partner v Senior partner<\/strong>\u00a0\u2013 The MP is the main boss of a law firm and runs the business internally; in large firms, the MP is too busy to do fee-earning work. The SP is a firm ambassador, focusing on client relationships externally and combines the role with fee-earning.<\/p>\n

N<\/h2>\n

NQ (Newly-Qualified)<\/strong>\u00a0\u2013 Refers to a lawyer in their first year of qualified legal practice, ie a lawyer who has successfully completed their training contract and has been admitted by the Law Society as a qualified solicitor.<\/p>\n

O<\/h2>\n

Of-counsel<\/strong> \u2013 American term for certain senior lawyers who are not partners.<\/p>\n

P<\/h2>\n

PEP (Profits per equity partner)<\/strong>\u00a0\u2013 A partner\u2019s annual share of their firm\u2019s profits.<\/p>\n

PPP\/PFI (Public Private Partnership\/Private Finance Initiative) <\/strong>\u2013 Forms of funding, typically for major public infrastructure such as roads, hospitals and prisons. Funding and operation is a collaboration between the government and private sector companies.<\/p>\n

PQE (Post-qualification experience)<\/strong>\u00a0\u2013 The number of years in legal practice since qualifying as a lawyer.<\/p>\n

Paralegal<\/strong>\u00a0\u2013 A legal assistant who is not a qualified solicitor or barrister. Typically has some legal training or experience.<\/p>\n

Private equity<\/strong>\u00a0\u2013 An area of legal practice advising on the funding (through shares or loans) provided by specialist organisations to unquoted companies.<\/p>\n

Private practice<\/strong>\u00a0\u2013 Working in a law firm or as a sole practitioner, rather than in-house at a company or in the public sector.<\/p>\n

Pro bono<\/strong>\u00a0\u2013 Latin term meaning \u2018for the good\u2019. Legal advice and assistance provided voluntarily and without charge.<\/p>\n

Pupil<\/strong>\u00a0\u2013 Trainee barrister working at a set of chambers.<\/p>\n

Pupilmaster<\/strong> \u2013 Fully-qualified barrister who supervises a pupil.<\/p>\n

Q<\/h2>\n

QC (Queen\u2019s Counsel)<\/strong>\u00a0\u2013 A senior barrister who has been selected by the Lord Chancellor to qualify for this most senior rank. Also known as a \u2018Silk\u2019 due to robe worn in court.<\/p>\n

Queen\u2019s Bench Division v Chancery Division<\/strong>\u00a0\u2013 Two of three subdivisions of the High Court (the third is the Family Division). The Queen\u2019s Bench hears cases such as contract and tort, and includes the Commercial Court and Admiralty Court. The Chancery handles matters such as equity, trusts, probate and bankruptcy, and includes the Companies Court and Patents Court.<\/p>\n

R<\/h2>\n

Rainmaker<\/strong>\u00a0\u2013 A hot-shot lawyer who brings lots of deals and money into the firm, and generally \u2018makes things happen\u2019.<\/p>\n

Rights of audience<\/strong> \u2013 A solicitor or legal professional qualified to undertake advocacy in court.<\/p>\n

S<\/h2>\n

Seat –\u00a0<\/strong>The name for a stint in a particular department within a law firm during a training contract. Seats usually last between three and six months but could be longer.<\/p>\n

Securities<\/strong>\u00a0\u2013 Forms of investment in a company, can either be shares (equity) or bonds (debt).<\/p>\n

Securitisation<\/strong>\u00a0\u2013 A method of raising finance by obtaining loans that are \u2018secured\u2019 against a particular asset of the company (asset-backed loan). The loans go into a Special Purpose Vehicle and therefore do not appear on the company\u2019s balance sheet.<\/p>\n

Set<\/strong>\u00a0\u2013 A group of barristers trading under a common name. Another word for Chambers.<\/p>\n

Solicitor advocate<\/strong>\u00a0\u2013 A solicitor with special qualifications to allow him\/her rights of audience in court. Avoids the requirement to hire a barrister.<\/p>\n

T<\/h2>\n

TMT (Telecoms, Media and Technology)<\/strong>\u00a0\u2013 An area of legal practice or law firm department, specialising in advising companies and individuals working in these sectors.<\/p>\n

Tenant<\/strong>\u00a0\u2013 A qualified barrister with permanent rooms in a set of chambers.<\/p>\n

Training contract<\/strong>\u00a0– A two-year training period which ends with qualifying as a solicitor. Trainee solicitors are usually required to gain experience in at least three different areas of law during their training contract.<\/p>\n

Trade mark attorney<\/strong>\u00a0\u2013 Professionals (Registered Trade Mark Agents \u2013 not solicitors or barristers) who specialise in advising clients on trade mark rights. May work in-house in companies or in private practice.<\/p>\n

V<\/h2>\n

Vanilla<\/strong>\u00a0\u2013 Or plain vanilla. Finance terminology meaning no unusual features. E.g. plain vanilla options or swaps.<\/p>\n

Venture capital<\/strong>\u00a0\u2013 Money provided by specialist organisations to invest in companies not listed on the stock exchange. Sometimes referred to as private equity and can be used to fund MBO\/MBIs, for example.<\/p>\n

W<\/h2>\n

Wet and dry shipping<\/strong>\u00a0\u2013 Both are specialist areas of legal practice. Wet shipping (also known as admiralty) involves advice on collisions, damage and salvage. Dry shipping is advice on carriage of goods contracts (charterparties) and cargo claims.<\/p>\n

White-collar crime<\/strong>\u00a0\u2013 Crime involving business and finance irregularities, such as fraud and tax evasion.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

If you\u2019re planning on becoming a lawyer it\u2019s best that you get to grips with the relevant jargon. It will soon become second nature and none of it is particularly … <\/p>\n

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