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...]
Last Trading Day
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Last Trading Day The last day under the rules of an exchange when trading can be done in a given options or futures contract. Any contracts unsettled at the end of this day should be settled or fulfilled by physical delivery of underlying commodities or instruments, or by monetary … [Read more...]
Last-In-First-Out (LIFO)
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Last-In-First-Out (LIFO) Inventory valuation method that bases calculation on the cost of the latest addition to the inventory first to evaluate the stock. … [Read more...]
Law Of Demand
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Law Of Demand Law in microeconomics stating that all other factors remaining equal, when price of goods or services increases, demand from consumers declines and vice versa. … [Read more...]
Law of One Price
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Law of One Price Concept in economy that a specific security must be priced the same, irrespective of how it has been created. This means that if the payoff of the security can be artificially created by a set of other securities, the price of this set and that of the security … [Read more...]
Lead
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Lead Repayment before expected time or due date, of any obligation that is financial in nature. … [Read more...]
Lead Manager
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Lead Manager Financial institution, like an investment or commercial bank that is primarily responsible for a syndicated bank credit or issue of bond. It employs additional underwriting or lending banks, finalizes the terms with the issuer, and undertakes market condition analysis. … [Read more...]
League Table
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League Table Company ranking on basis of revenue, deals or any other similar data. The companies are listed according to rank and this list is used by investors to evaluate businesses in comparison with peers or by companies as marketing tools. … [Read more...]
Leakage
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Leakage Issue of information to individuals prior to the official announcement made to the public. … [Read more...]
LEAPS
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LEAPS Long term options. Stands for Long-term equity anticipation securities. … [Read more...]
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