Ladder strategy: A bond portfolio strategy in which the portfolio is constructed to hav ...
Lag: Payment of a financial obligation later than is expected or required, ...
Lag response of prepayments: There is typically a lag of about three months between the time the we ...
LAK: Kip from Lao People's Democratic Republic (formerly Laos).
Lambda: The ratio of a change in the option price to a small change in the opt ...
LAPR: Life Assurance Premium Relief
Last split: After a stock split, the number of shares distributed for each share h ...
Last straw: Mistake or problem that causes a manager to take action.
Last trading day: The final day under an exchange's rules during which trading may take ...
Last-In-First-Out (LIFO): A method of valuing inventory that uses the cost of the most recent it ...
LAUTRO: Life Assurance and Unit Trust Regulatory Organisation. LAUTRO is now p ...
Law of large numbers: The mean of a random sample approaches the mean (expected value) of th ...
Law of one price: An economic rule stating that a given security must have the same pric ...
Layered Trusts: Trusts placed in series where the beneficiary of the first trust is th ...
LBP: Lebanese Pound from Lebanon.
Lead: Payment of a financial obligation earlier than is expected or required ...
Lead manager: The bank or financial institution in charge of setting up a syndicated ...
Leading economic indicators: Economic series that tend to rise or fall in advance of the rest of th ...
Leakage: Release of information to some persons before official public announce ...
Lean production: Lean production is a range of management techniques that aim to make b ...
LEAPS: Long-term equity anticipation securities (LEAPS) are relatively long-t ...
Learning-by-doing: A way of transferring knowledge that is complex or embedded I a comple ...
Lease: A long-term rental agreement, and a form of secured long-term debt.
Lease Rate: The payment per period stated in a lease contract.
Ledger cash: A firm's cash balance as reported in its financial statements. Also ca ...
Legal bankruptcy: A legal proceeding for liquidating or reorganizing a business.
Legal capital: Value at which a company's shares are recorded in its books.
Legal defeasance: The deposit of cash and permitted securities, as specified in the bond ...
Legal investments: Investments that a regulated entity is permitted to make under the rul ...
LEL: Lower Earnings Limit
Lemon: A defective product, especially a car. Lemon laws in the U.S. typicall ...
Lend: To provide money temporarily on the condition that it or its equivalen ...
Lessee: An entity that leases an asset from another entity.
Lessor: An entity that leases an asset to another entity.
Letter of comment: A communication to the firm from the SEC that suggests changes to its ...
Letter of credit (L/C): A form of guarantee of payment issued by a bank used to guarantee the ...
Letter of Wishes: Guidance and a request to the trustee having no binding powers over th ...
Letter stock: Privately placed common stock, so-called because the SEC requires a le ...
Level pay: The characteristic of the scheduled principal and interest payments du ...
Level-coupon bond: Bond with a stream of coupon payments that are the same throughout the ...
Leverage: The use of debt financing.
Leverage clientele: A group of shareholders who, because of their personal leverage, seek ...
Leverage ratios: Measures of the relative contribution of stockholders and creditors, a ...
Leverage rebalancing: Making transactions to adjust (rebalance) a firm's leverage ratio back ...
Leveraged beta: The beta of a leveraged required return; that is, the beta as adjusted ...
Leveraged buyout (LBO): A transaction used for taking a public corporation private financed th ...
Leveraged equity: Stock in a firm that relies on financial leverage. Holders of leverage ...
Leveraged lease: A lease arrangement under which the lessor borrows a large proportion ...
Leveraged portfolio: A portfolio that includes risky assets purchased with funds borrowed.
Leveraged required return: The required return on an investment when the investment is financed p ...
LIA: Life Insurance Association
Liability: A financial obligation, or the cash outlay that must be made at a spec ...
Liability funding strategies: Investment strategies that select assets so that cash flows will equal ...
Liability swap: An interest rate swap used to alter the cash flow characteristics of a ...
LIBID: The London Interbank Bid Rate (LIBID) is the rate bid by banks on Euro ...
LIBMEAN: The average of LIBID and LIBOR.
LIBOR: London Interbank Offer Rate. The interest rate the most creditworthy b ...
LIBOR-in-Arrears Swap: A swap where the interest paid on a date is determined by the interest ...
Licensed Warehouse: A warehouse approved by exchange from which a commodity may be deliver ...
Lien: A security interest in one or more assets that is granted to lenders i ...
LIFFE: London International Financial Futures Exchange
LIFO (Last-in-first-out): The last-in-first-out inventory valuation methodology. A method of val ...
Lifting a leg: Closing out one side of a long-short arbitrage before the other is clo ...
Lightning rod: Person who initiates change, particularly dramatic and potentially dan ...
Like an Edsel: A failure. Ford Motor Company introduced the Edsel with great fanfare ...
Limit Move: The maximum price move permitted by the exchange in a single trading s ...
Limit Move: A price that has advanced or declined the permissible limit during one ...
Limit Order: An order that can be executed only at a specified price or one more fa ...
Limit order book: A record of unexecuted limit orders that is maintained by the speciali ...
Limit price: Maximum price fluctuation
Limitation on asset dispositions: A bond covenant that restricts in some way a firm's ability to sell ma ...
Limitation on liens: A bond covenant that restricts in some way a firm's ability to grant l ...
Limitation on merger, consolidation, or sale: A bond covenant that restricts in some way a firm's ability to merge ...
Limitation on sale-and-leaseback: A bond covenant that restricts in some way a firm's ability to enter i ...
Limitation on subsidiary borrowing: A bond covenant that restricts in some way a firm's ability to borrow ...
Limited Company: A domestic business company with limited liabilities.
Limited liability: Limitation of possible loss to what has already been invested.
Limited Liability Company (LLC): Consists of member owners and a manager, at a minimum. Similar to a co ...
Limited liability limited partnership (LLLP): Intended to protect the general partners from liability. Previously, t ...
Limited liability partnership (LLP): A form of the LLC favored and used for professional associations, such ...
Limited partner: A partner who has limited legal liability for the obligations of the p ...
Limited partnership: A partnership that includes one or more partners who have limited liab ...
Limited-liability instrument: A security, such as a call option, in which the owner can only lose hi ...
Limited-tax general obligation bond: A general obligation bond that is limited as to revenue sources.
Line of credit: An informal arrangement between a bank and a customer establishing a m ...
Linear programming: Technique for finding the maximum value of some equation subject to st ...
Linear regression: A statistical technique for fitting a straight line to a set of data p ...
Lintner's observations: John Lintner's work (1956) suggested that dividend policy is related t ...
Lip service: Officially agreeing with, even though you may have reservations about ...
Liquid asset: Asset that is easily and cheaply turned into cash - notably cash itsel ...
Liquid yield option note (LYON): Zero-coupon, callable, putable, convertible bond invented by Merrill ...
Liquidating dividend: Payment by a firm to its owners from capital rather than from earnings ...
Liquidation: When a firm's business is terminated, assets are sold, proceeds pay cr ...
Liquidation Preference: Sometimes, usually by virtue of an agreement, certain shareholders wil ...
Liquidation rights: The rights of a firm's securityholders in the event the firm liquidate ...
Liquidation value: Net amount that could be realized by selling the assets of a firm afte ...
Liquidator: Person appointed by unsecured creditors in the United Kingdom to overs ...
Liquidity: A market is liquid when it has a high level of trading activity, allow ...
Liquidity diversification: Investing in a variety of maturities to reduce the price risk to which ...
Liquidity preference hypothesis: The argument that greater liquidity is valuable, all else equal. Also, ...
Liquidity premium: The amount that forward interest rates exceed expected future spot int ...
Liquidity ratios: Ratios that measure a firm's ability to meet its short-term financial ...
Liquidity risk: The risk that arises from the difficulty of selling an asset. It can b ...
Liquidity risk on bonds: The primary measure of liquidity is the size of the bid-ask spread. Li ...
Liquidity theory of the term structure: A biased expectations theory that asserts that the implied forward ra ...
LISA: Lifelong Individual Savings Account
Listed stocks: Stocks that are traded on an exchange.
LKR: Sri Lankan Rupee from Sri Lanka
Load fund: A mutual fund with shares sold at a price including a large sales char ...
Load-to-load: Arrangement whereby the customer pays for the last delivery when the n ...
Loan amortization schedule: The schedule for repaying the interest and principal on a loan.
Loan syndication: Group of banks sharing a loan.
Loan value: The amount a policyholder may borrow against a whole life insurance po ...
Local expectations theory: A form of the pure expectations theory which suggests that the returns ...
Lock-out: With PAC bond CMO classes, the period before the PAC sinking fund beco ...
Lock-up CDs: CDs that are issued with the tacit understanding that the buyer will n ...
Lockbox: A collection and processing service provided to firms by banks, which ...
Locked market: A market is locked if the bid = ask price. This can occur, for example ...
Log-linear least-squares method: A statistical technique for fitting a curve to a set of data points. O ...
Lognormal distribution: A varaible has a lognormal distribution when the logarithm of the vari ...
London Gold Market: Refers to the five dealers who set (fix) the gold price in London: Moc ...
London International Financial Futures Exchange: London International Financial Futures Exchange (LIFFE) is a London ex ...
London Option: A generic term sometimes used to describe options on physical commodit ...
Long: One who has bought a contract(s) to establish a market position and wh ...
Long bonds: Bonds with a long current maturity. The "long bond" is the 30-year U.S ...
Long coupons: (a) Bonds or notes with a long current maturity. (b) A bond on which o ...
Long hedge: The purchase of a futures contract(s) in anticipation of actual purcha ...
Long position: An options position where a person has executed one or more option tra ...
Long run: A period of time in which all costs are variable; greater than one yea ...
Long straddle: A straddle in which a long position is taken in both a put and call op ...
Long-term: In accounting information, one year or greater.
Long-term assets: Value of property, equipment and other capital assets minus the deprec ...
Long-term bonds: Bonds with a maturity of more than 12 years.
Long-term debt: An obligation having a maturity of more than one year from the date it ...
Long-term debt ratio: The ratio of long-term debt to total capitalization.
Long-term debt to equity ratio: A capitalization ratio comparing long-term debt to shareholders' equit ...
Long-term debt/capitalization: Indicator of financial leverage. Shows long-term debt as a proportion ...
Long-term financial plan: Financial plan covering two or more years of future operations.
Long-term liabilities: Amount owed for leases, bond repayment and other items due after 1 yea ...
Look-thru: A method for calculating U.S. taxes owed on income from controlled for ...
Lookback option: An option that allows the buyer to choose as the option strike price a ...
Low price: This is the day's lowest price of a security that has changed hands be ...
Low price-earnings ratio effect: The tendency of portfolios of stocks with a low price-earnings ratio t ...
Low-coupon bond refunding: Refunding of a low coupon bond with a new, higher coupon bond.
LRD: Liberian Dollar from Liberia.
LRP: Limited Revaluation Premium
LSL: Loti from Lesotho.
LSM: Maloti from Lesotho.
LTL: Litas from Lithuania.
Luddites: Workers who feel their jobs are threatened by changing technology. The ...
LUF: Luxembourg Franc (no longer in use) from Luxembourg. Now replaced by t ...
LVL: Lat from Latvia.
LYD: Libyan Dinar from Libyan Arab Jamahiriya.
Lag: Payment of a financial obligation later than is expected or required, ...
Lag response of prepayments: There is typically a lag of about three months between the time the we ...
LAK: Kip from Lao People's Democratic Republic (formerly Laos).
Lambda: The ratio of a change in the option price to a small change in the opt ...
LAPR: Life Assurance Premium Relief
Last split: After a stock split, the number of shares distributed for each share h ...
Last straw: Mistake or problem that causes a manager to take action.
Last trading day: The final day under an exchange's rules during which trading may take ...
Last-In-First-Out (LIFO): A method of valuing inventory that uses the cost of the most recent it ...
LAUTRO: Life Assurance and Unit Trust Regulatory Organisation. LAUTRO is now p ...
Law of large numbers: The mean of a random sample approaches the mean (expected value) of th ...
Law of one price: An economic rule stating that a given security must have the same pric ...
Layered Trusts: Trusts placed in series where the beneficiary of the first trust is th ...
LBP: Lebanese Pound from Lebanon.
Lead: Payment of a financial obligation earlier than is expected or required ...
Lead manager: The bank or financial institution in charge of setting up a syndicated ...
Leading economic indicators: Economic series that tend to rise or fall in advance of the rest of th ...
Leakage: Release of information to some persons before official public announce ...
Lean production: Lean production is a range of management techniques that aim to make b ...
LEAPS: Long-term equity anticipation securities (LEAPS) are relatively long-t ...
Learning-by-doing: A way of transferring knowledge that is complex or embedded I a comple ...
Lease: A long-term rental agreement, and a form of secured long-term debt.
Lease Rate: The payment per period stated in a lease contract.
Ledger cash: A firm's cash balance as reported in its financial statements. Also ca ...
Legal bankruptcy: A legal proceeding for liquidating or reorganizing a business.
Legal capital: Value at which a company's shares are recorded in its books.
Legal defeasance: The deposit of cash and permitted securities, as specified in the bond ...
Legal investments: Investments that a regulated entity is permitted to make under the rul ...
LEL: Lower Earnings Limit
Lemon: A defective product, especially a car. Lemon laws in the U.S. typicall ...
Lend: To provide money temporarily on the condition that it or its equivalen ...
Lessee: An entity that leases an asset from another entity.
Lessor: An entity that leases an asset to another entity.
Letter of comment: A communication to the firm from the SEC that suggests changes to its ...
Letter of credit (L/C): A form of guarantee of payment issued by a bank used to guarantee the ...
Letter of Wishes: Guidance and a request to the trustee having no binding powers over th ...
Letter stock: Privately placed common stock, so-called because the SEC requires a le ...
Level pay: The characteristic of the scheduled principal and interest payments du ...
Level-coupon bond: Bond with a stream of coupon payments that are the same throughout the ...
Leverage: The use of debt financing.
Leverage clientele: A group of shareholders who, because of their personal leverage, seek ...
Leverage ratios: Measures of the relative contribution of stockholders and creditors, a ...
Leverage rebalancing: Making transactions to adjust (rebalance) a firm's leverage ratio back ...
Leveraged beta: The beta of a leveraged required return; that is, the beta as adjusted ...
Leveraged buyout (LBO): A transaction used for taking a public corporation private financed th ...
Leveraged equity: Stock in a firm that relies on financial leverage. Holders of leverage ...
Leveraged lease: A lease arrangement under which the lessor borrows a large proportion ...
Leveraged portfolio: A portfolio that includes risky assets purchased with funds borrowed.
Leveraged required return: The required return on an investment when the investment is financed p ...
LIA: Life Insurance Association
Liability: A financial obligation, or the cash outlay that must be made at a spec ...
Liability funding strategies: Investment strategies that select assets so that cash flows will equal ...
Liability swap: An interest rate swap used to alter the cash flow characteristics of a ...
LIBID: The London Interbank Bid Rate (LIBID) is the rate bid by banks on Euro ...
LIBMEAN: The average of LIBID and LIBOR.
LIBOR: London Interbank Offer Rate. The interest rate the most creditworthy b ...
LIBOR-in-Arrears Swap: A swap where the interest paid on a date is determined by the interest ...
Licensed Warehouse: A warehouse approved by exchange from which a commodity may be deliver ...
Lien: A security interest in one or more assets that is granted to lenders i ...
LIFFE: London International Financial Futures Exchange
LIFO (Last-in-first-out): The last-in-first-out inventory valuation methodology. A method of val ...
Lifting a leg: Closing out one side of a long-short arbitrage before the other is clo ...
Lightning rod: Person who initiates change, particularly dramatic and potentially dan ...
Like an Edsel: A failure. Ford Motor Company introduced the Edsel with great fanfare ...
Limit Move: The maximum price move permitted by the exchange in a single trading s ...
Limit Move: A price that has advanced or declined the permissible limit during one ...
Limit Order: An order that can be executed only at a specified price or one more fa ...
Limit order book: A record of unexecuted limit orders that is maintained by the speciali ...
Limit price: Maximum price fluctuation
Limitation on asset dispositions: A bond covenant that restricts in some way a firm's ability to sell ma ...
Limitation on liens: A bond covenant that restricts in some way a firm's ability to grant l ...
Limitation on merger, consolidation, or sale: A bond covenant that restricts in some way a firm's ability to merge ...
Limitation on sale-and-leaseback: A bond covenant that restricts in some way a firm's ability to enter i ...
Limitation on subsidiary borrowing: A bond covenant that restricts in some way a firm's ability to borrow ...
Limited Company: A domestic business company with limited liabilities.
Limited liability: Limitation of possible loss to what has already been invested.
Limited Liability Company (LLC): Consists of member owners and a manager, at a minimum. Similar to a co ...
Limited liability limited partnership (LLLP): Intended to protect the general partners from liability. Previously, t ...
Limited liability partnership (LLP): A form of the LLC favored and used for professional associations, such ...
Limited partner: A partner who has limited legal liability for the obligations of the p ...
Limited partnership: A partnership that includes one or more partners who have limited liab ...
Limited-liability instrument: A security, such as a call option, in which the owner can only lose hi ...
Limited-tax general obligation bond: A general obligation bond that is limited as to revenue sources.
Line of credit: An informal arrangement between a bank and a customer establishing a m ...
Linear programming: Technique for finding the maximum value of some equation subject to st ...
Linear regression: A statistical technique for fitting a straight line to a set of data p ...
Lintner's observations: John Lintner's work (1956) suggested that dividend policy is related t ...
Lip service: Officially agreeing with, even though you may have reservations about ...
Liquid asset: Asset that is easily and cheaply turned into cash - notably cash itsel ...
Liquid yield option note (LYON): Zero-coupon, callable, putable, convertible bond invented by Merrill ...
Liquidating dividend: Payment by a firm to its owners from capital rather than from earnings ...
Liquidation: When a firm's business is terminated, assets are sold, proceeds pay cr ...
Liquidation Preference: Sometimes, usually by virtue of an agreement, certain shareholders wil ...
Liquidation rights: The rights of a firm's securityholders in the event the firm liquidate ...
Liquidation value: Net amount that could be realized by selling the assets of a firm afte ...
Liquidator: Person appointed by unsecured creditors in the United Kingdom to overs ...
Liquidity: A market is liquid when it has a high level of trading activity, allow ...
Liquidity diversification: Investing in a variety of maturities to reduce the price risk to which ...
Liquidity preference hypothesis: The argument that greater liquidity is valuable, all else equal. Also, ...
Liquidity premium: The amount that forward interest rates exceed expected future spot int ...
Liquidity ratios: Ratios that measure a firm's ability to meet its short-term financial ...
Liquidity risk: The risk that arises from the difficulty of selling an asset. It can b ...
Liquidity risk on bonds: The primary measure of liquidity is the size of the bid-ask spread. Li ...
Liquidity theory of the term structure: A biased expectations theory that asserts that the implied forward ra ...
LISA: Lifelong Individual Savings Account
Listed stocks: Stocks that are traded on an exchange.
LKR: Sri Lankan Rupee from Sri Lanka
Load fund: A mutual fund with shares sold at a price including a large sales char ...
Load-to-load: Arrangement whereby the customer pays for the last delivery when the n ...
Loan amortization schedule: The schedule for repaying the interest and principal on a loan.
Loan syndication: Group of banks sharing a loan.
Loan value: The amount a policyholder may borrow against a whole life insurance po ...
Local expectations theory: A form of the pure expectations theory which suggests that the returns ...
Lock-out: With PAC bond CMO classes, the period before the PAC sinking fund beco ...
Lock-up CDs: CDs that are issued with the tacit understanding that the buyer will n ...
Lockbox: A collection and processing service provided to firms by banks, which ...
Locked market: A market is locked if the bid = ask price. This can occur, for example ...
Log-linear least-squares method: A statistical technique for fitting a curve to a set of data points. O ...
Lognormal distribution: A varaible has a lognormal distribution when the logarithm of the vari ...
London Gold Market: Refers to the five dealers who set (fix) the gold price in London: Moc ...
London International Financial Futures Exchange: London International Financial Futures Exchange (LIFFE) is a London ex ...
London Option: A generic term sometimes used to describe options on physical commodit ...
Long: One who has bought a contract(s) to establish a market position and wh ...
Long bonds: Bonds with a long current maturity. The "long bond" is the 30-year U.S ...
Long coupons: (a) Bonds or notes with a long current maturity. (b) A bond on which o ...
Long hedge: The purchase of a futures contract(s) in anticipation of actual purcha ...
Long position: An options position where a person has executed one or more option tra ...
Long run: A period of time in which all costs are variable; greater than one yea ...
Long straddle: A straddle in which a long position is taken in both a put and call op ...
Long-term: In accounting information, one year or greater.
Long-term assets: Value of property, equipment and other capital assets minus the deprec ...
Long-term bonds: Bonds with a maturity of more than 12 years.
Long-term debt: An obligation having a maturity of more than one year from the date it ...
Long-term debt ratio: The ratio of long-term debt to total capitalization.
Long-term debt to equity ratio: A capitalization ratio comparing long-term debt to shareholders' equit ...
Long-term debt/capitalization: Indicator of financial leverage. Shows long-term debt as a proportion ...
Long-term financial plan: Financial plan covering two or more years of future operations.
Long-term liabilities: Amount owed for leases, bond repayment and other items due after 1 yea ...
Look-thru: A method for calculating U.S. taxes owed on income from controlled for ...
Lookback option: An option that allows the buyer to choose as the option strike price a ...
Low price: This is the day's lowest price of a security that has changed hands be ...
Low price-earnings ratio effect: The tendency of portfolios of stocks with a low price-earnings ratio t ...
Low-coupon bond refunding: Refunding of a low coupon bond with a new, higher coupon bond.
LRD: Liberian Dollar from Liberia.
LRP: Limited Revaluation Premium
LSL: Loti from Lesotho.
LSM: Maloti from Lesotho.
LTL: Litas from Lithuania.
Luddites: Workers who feel their jobs are threatened by changing technology. The ...
LUF: Luxembourg Franc (no longer in use) from Luxembourg. Now replaced by t ...
LVL: Lat from Latvia.
LYD: Libyan Dinar from Libyan Arab Jamahiriya.
