LIBOR The rate of interest that is charged by major international banks located in London for borrowings from each other. Stands for London Interbank Offered Rate. Several variable rates of interest in the U.S. are dependent on spreads off of this rate. Several different LIBOR … [Read more...]
Limit Order Book
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Limit Order Book The specialist’s record detailing unexecuted limit orders. These orders get the same order of priority with respect to execution as other orders. … [Read more...]
Lien
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Lien An interest or claim granted over assets of a business to its creditors/ lenders in secured debt financing in exchange for funds. … [Read more...]
Lifetime Cap
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Lifetime Cap Maximum rate of interest that can be charged at any point during the term of an adjustable-rate mortgage (ARM). Usually expressed as a percentage increase from an original interest rate. Such caps are part of a mortgage's interest rate cap structure. … [Read more...]
LIFO (Last-in-First-out)
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LIFO (Last-in-First-out) Inventory valuation methodology wherein the cost of the most recent or last bought item in the inventory is used to measure the total inventory. … [Read more...]
Lifting a Leg
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Lifting a Leg Offsetting or closing out one side or one position of a long-short arbitrage before closing the other. … [Read more...]
Limit Order
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Limit Order Instruction given by investor to execute a buy transaction at or below a given price or to execute a sell transaction at or above a given price. The account holder or customer specifies the price that the order should be executed at. This is a conditional trading … [Read more...]
Limit Up
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Limit Up Maximum amount of increase that is possible in the price of a commodity futures contract in one trading day. … [Read more...]
Limitation on Asset Dispositions
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Limitation on Asset Dispositions A covenant contained in a bond wherein any major asset sales by the company are restricted. … [Read more...]
Limitation on Liens
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Limitation on Liens A covenant contained in a bond restricting a company’s ability to grant liens that are placed on the assets of the company. … [Read more...]
Limitation on Merger, Consolidation, or Sale
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Limitation on Merger, Consolidation, or Sale A covenant contained in a bond restricting a company’s ability to enter agreements with another firm for merging or consolidating operations. … [Read more...]
Limitation on Sale-and-Leaseback
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Limitation on Sale-and-Leaseback A covenant contained in a bond restricting a company’s ability to enter transactions involving lease backs or sales. … [Read more...]
Limitation on Subsidiary Borrowing
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Limitation on Subsidiary Borrowing A covenant contained in a bond restricting a company’s firm's ability to borrow at the subsidiary level in some way. … [Read more...]
Limited Liability
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Limited Liability Restriction of any possible loss that may occur in the amount invested in any venture. … [Read more...]
Limited Liability Company- LLC
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Limited Liability Company- LLC A combination of a partnership and corporation. The shareholders have limited liability for company actions. … [Read more...]
Limited Partner
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Limited Partner A member of a partnership who enjoys limited legal liability towards the partnership’s obligations. … [Read more...]
Limited Partnership
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Limited Partnership An understanding where the partnership includes partners who carry liability that is restricted to a specified degree under the terms of the agreement. … [Read more...]
Limited-Liability Instrument
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Limited-Liability Instrument Any security wherein the holder runs the risk of losing his initial investment amount or capital. For example, a call option. … [Read more...]
Limited-Tax General Obligation Bond
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Limited-Tax General Obligation Bond Bond with general obligations where the revenue sources are limited. … [Read more...]
Line Of Business Limitations
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Line Of Business Limitations Federal income tax rule applicable to fringe benefits availed by employees. Employees of companies with multiple lines of business receiving fringe benefit from a business section that he/ she does not contribute to, are taxable for that benefit. … [Read more...]
