Choose a letter above or browse financial terms for the currently selected letter below. Click on the term name to see any articles that are related to the term.

Last Split

After a stock split, the number of shares distributed for each share held, and the date of the distribution.

Leading Economic Indicators

A set of ten economic indicators that tend to rise or fall before the rest of the economy. Indicators include building permits, stock prices, real money supply, and vendor performance.

Lease

A long-term rental agreement, or a form of secured long-term debt.

Lessee

A person or organization that leases an asset from another.

Lessor

A person or organization that leases an asset to another.

Leverage

The use of fixed-rate debt financing to try to boost an investment’s rate of return.

Leveraged Buyout (LBO)

A strategy used to take a public corporation private financed through the use of debt funds (bank loans and bonds).

Liabilities

Claims against a corporation.

Limit Order

An order to buy or sell a security at a customer’s specified price or customer’s order to buy or sell a specified number of shares of a security at a specific price.

Line of Credit

A borrower receives a specified amount of unsecured credit for a specified period of time.

Liquidation

The process of selling off assets and paying creditors and shareholders after terminating a firm’s business. Converting securities or property into cash.

Liquidity

The liquidity of a stock is the ease with which the market can absorb volume buying or selling without dramatic fluctuation in price.

Listed Stock

A stock traded on an exchange.

Load

A sales charge associated with some mutual funds.

Locked In

Because of capital gains tax consequences, an investor does not sell a profitable investment.

Long

Stock ownership. One who has ownership of securities is in a ‘long position.’