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...]
Line of Credit
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Line of Credit Understanding between customer and his bank, that may be informal, to establish a loan balance with a specific maximum limit. The bank allows the customer to draw funds from this loan or credit over a predetermined period of time until the maximum loan limit is … [Read more...]
Linear Programming
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Linear Programming Technical tool used for determining the maximum value of any equation when some stated linear constraints are considered. … [Read more...]
Linear Regression
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Linear Regression Technique used in statistical analysis representing a given set of data points using a straight line touching each point. … [Read more...]
Linter’s Observations
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Linter's Observations A 1956 research conducted by John Lintner's suggesting that dividend policy is linked to a level of dividends that is targeted and the pace at which adjustment occurs in changes in dividends. … [Read more...]
Lipper Indexes
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Lipper Indexes Index series tracking the financial performance of many types of mutual funds. Allows investors to measure a mutual fund investment against an index of 30 funds. … [Read more...]
Liquid Asset
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Liquid Asset Cash or highly liquid short term securities that can be converted to cash easily and with minimum cost. … [Read more...]
Liquid Yield Option Note (LYON)
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Liquid Yield Option Note (LYON) Convertible bond created by Merrill Lynch & Co that comes with zero coupon rate, is callable and puttable. … [Read more...]
Liquidating Dividend
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Liquidating Dividend Distribution of payment from capital funds instead of earnings by a company to its owners. … [Read more...]
Liquidation
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Liquidation Related to buy in, evening up, offset liquidity. -Termination of a firm's business, wherein assets are sold off and the proceeds realized are used to pay creditors. Any balance left over is shared among shareholders. - Transactions or trading positions that offset … [Read more...]
Liquidation Preference
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Liquidation Preference Related to venture capital contracts. Specifies priority of payment and amount of payment for investors in event of liquidation of the business. Helps insulate venture capitalists from sustaining losses by ensuring payback of original investment on priority. … [Read more...]
Liquidation Value
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Liquidation Value The amount of funds (net) that can be realized after the debts of the firm are paid back from the proceeds of sale of assets. … [Read more...]
