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Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "L"

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Liquidation Value
Definition: Net amount that could be realized by selling the assets of a firm after paying the debt.
Liquidator
Definition: Person appointed by an unsecured creditor in the United Kingdom to oversee the sale of an insolvent firm's assets and the repayment of its debts.
Liquidity
Definition: A high level of trading activity, allowing buying and selling with minimum price disturbance. Also, a market characterized by the ability to buy and sell with relative ease. Antithesis of illiquidity.
Liquidity Diversification
Definition: Investing in a variety of maturities to reduce the price risk to which holding long bonds exposes the investor.
Liquidity Fund
Definition: A California company that buys real estate limited partnership interests at 25% to 35% lower than the current value of the real estate assets.
Liquidity Preference Hypothesis
Definition: The argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates.
Liquidity Premium
Definition: Forward rate minus expected future short-term interest rate.
Liquidity Ratios
Definition: Ratios that measure a firm's ability to meet its short-term financial obligations on time, such as the ratio of current assets to current liabilities.
Liquidity Risk
Definition: The risk that arises from the difficulty of selling an asset in a timely manner. It can be thought of as the difference between the "true value" of the asset and the likely price, less commissions.
Liquidity Theory Of The Term Structure
Definition: A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market's expectations of future interest rates because they embody a liquidity premium.
Lisbon Stock Exchange (LSE)
Definition: Stock exchange trading stocks, bonds, and unit trusts. The BVL general index is the exchange's official index.
Listed Firm
Definition: A company whose stock trades on a stock exchange, and conforms to listing requirements.
Listed Option
Definition: An option that has been accepted for trading on an exchange.
Listed Security
Definition: Stock or bond that has been accepted for trading by one of the organized and registered securities exchanges in the United States. Generally, the advantages of being listed are that exchanges provide: (1) an orderly marketplace; (2) liquidity; (3) fair price determination; (4) accurate and continuous reporting on sales and quotations; (5) information on listed companies; and (6) strict regulation for the protection of securityholders. Antithesis of OTC Security.
Listed Stocks
Definition: Stocks that are traded on an exchange.
Listing
Definition: In the context of real estate, written agreement between a property owner and a real estate broker that gives the broker permission to find a buyer or tenant for some property. See: Listing broker.
Listing Broker
Definition: In the context of equity, when a stock is traded in exchange it is said to be listed. A licensed real estate broker who completes a listing of a property for sale.
Listing Requirements
Definition: Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading.
Living Benefits
Definition: Life insurance benefits from which the insured can draw cash while still living, usually in the case of some high-cost illness.
Living Trust
Definition: A trust that an individual establishes during the individual's lifetime, enabling the person to control the assets contributed to the trust. Also known as an inter vivos trust.
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