Glossary of Terms

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There are currently 13 names in this directory beginning with the letter L.
Laddering
A technique used where multiple investments are purchased with different maturity dates
Lender
Someone who lends money.
Letter of Intent
A document outlining the agreement of two or more parties with the intention of carrying out stated agreements.
Leverage
An investment strategy where money is borrowed to invest in hope of increasing the return on the investment.
Liabilities
Amounts owed from past transactions that a company is obliged to pay.
Limited offering
The offering of new securities sold to a limited number of investors.
Liquidation
The distribution of a business’s assets as it comes to an end. This is usually done when a business can no longer meet its financial obligations.
Liquidity
The liquidity of an asset is measured by the ease with which it can be converted into cash. Your current account, for example, is more liquid than your house. If you needed to sell your house quickly to pay bills you would have to drop the price substantially to get a sale.
Listed company
A company whose shares are listed on a stock exchange and allowed to trade on that stock exchange
Loan
The lending of money by individuals or organizations with the intent of getting it back at a later date
Locked-in
A situation where an investor cannot and/or will not change their position due to regulations, taxes or penalties incurred with doing so.
Long position
The purchase of securities with the expectation that they will rise in value.
Lump-sum
A single fixed payment of money

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