Level Pay The property of the interest and principal payments due towards a mortgage scheduled in such a way that total monthly payment of the two combined is the same even when the share paid towards principal gradually grows bigger while the interest payment becomes less every … [Read more...]
London International Financial Futures Exchange (LIFFE)
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London International Financial Futures Exchange (LIFFE) An exchange in London where Eurodollar futures and futures-style options are transacted. … [Read more...]
Liquidation Rights
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Liquidation Rights Security holder’s right with respect to repayment of their debts when the liquidation of the company occurs. … [Read more...]
Letter of Credit (L/C)
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Letter of Credit (L/C) A kind of guarantee of payment, made by a bank on bond issues, to guarantee the repayment of principal as well as interest payments. … [Read more...]
Lookback Option
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Lookback Option Options that let the holder choose the strike price from the historical prices of the underlying asset during the life of the current option. In a call option, the holder chooses minimum price and in a put option, he choose the maximum to make the best possible … [Read more...]
Limit Price
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Limit Price Refer: Maximum price fluctuation. Price instructed by investor for limit orders. … [Read more...]
Long-Term Growth – LTG
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Long-Term Growth - LTG Strategy used in investing wherein security appreciates in value for a long term although growth may be initiated immediately or later on. … [Read more...]
Liquidity Preference Hypothesis
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Liquidity Preference Hypothesis Concept that when all else is equal, higher liquidity is valuable. Also refers to the concept that the future interest rate is lower than forward rates. … [Read more...]
Look-Thru
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Look-Thru Tax calculation method used in U.S. to measure taxes payable on income earned from controlled overseas corporations. The Tax Reform Act of 1986 brought this method into use. … [Read more...]
Leading Economic Indicators
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Leading Economic Indicators Data pertaining to or signifying economic factors, that rise or fall before the rest of the economy follows suit. … [Read more...]
Liability Driven Investment – LDI
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Liability Driven Investment - LDI Investing strategy where primary goal is to invest in sufficient assets to meet all current and future liabilities. Commonly found with defined-benefit pension plans. … [Read more...]
Loan Amortization Schedule
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Loan Amortization Schedule The due dates specified under a schedule for a loan for making interest and principal repayments. … [Read more...]
Law of Large Numbers
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Law of Large Numbers Theory suggesting that any random sample’s mean value gravitates towards the mean or expected value of the population with increasing sample size. … [Read more...]
L-Shaped Recovery
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L-Shaped Recovery Pattern seen in recession and recovery in the economy that resembles an "L" when charted. Denotes the trend followed by economic measures, such as GDP, employment, and production. The L-shaped recovery signifies a sharp fall in these parameters followed by … [Read more...]
Ladder Strategy
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Ladder Strategy Strategy used with bond portfolios where the investments are designed so that similar amounts are invested within a specific range in every term of maturity. … [Read more...]
Lag
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Lag Opposite of Lead. Payment with respect to a financial obligation at a date later than its actual due date or expected date of payment. Also used in regression analysis. Represents the number of periods or phases that the independent variable is "held back" so as to predict the … [Read more...]
Lag Response of Prepayments
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Lag Response of Prepayments Usually there is a three month lag between the date that the weighted average coupon of an Mortgage Based Security pool has exceeded the refinancing and the actual time when prepayment speed accelerates visibly. … [Read more...]
Land Value Tax- LVT
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Land Value Tax- LVT The amount of tax payable on valuation of land. A component of real estate property tax. LVT takes the fair value of the land into consideration. … [Read more...]
Lambda
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Lambda The change as denoted by a ratio, in the price of an option to a small fluctuation in the volatility of the option. Can be described as a partial derivative of the price with respect to the volatility of the option. … [Read more...]
Last Split
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Last Split The number of shares distributed for each share held after a stock split and the distribution date. … [Read more...]
