Lifting a leg

Closing out one side of a long-short arbitrage before the other is closed.

Similar financial terms

Oversubscription privilege
In a rights issue, arrangement by which shareholders are given the right to apply for any shares that are not taken up.

Legal investments
Investments that a regulated entity is permitted to make under the rules and regulations that govern its investing.

Legal defeasance
The deposit of cash and permitted securities, as specified in the bond indenture, into an irrevocable trust sufficient to enable the issuer to discharge fully its obligations under the bond indenture.

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.

Mutual Legal Assistance Treaty (MLAT)
An agreement among the U.S. and many Caribbean countries for the exchange of information for the enforcement of criminal laws. U.S. tax evasion is excluded as not being a crime to the offshore countries. The British Virgin Islands have not executed the Treaty.

Mutual Fund Switching Privileges
Allow an investor to switch out of and into a different fund(s) within the same family of funds at very low or no compensation.

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Buy limit order

A conditional trading order that indicates a security may be purchased only at the designated price or lower.


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