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Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Load Spread Option
A method of allocating the annual sales charge on load funds, often through percentage deductions fr

Load-To-Load
Arrangement whereby the customer pays for the last delivery when the next one is received.

Loan
Temporary borrowing of a sum of money. If you borrow $1 million you have taken out a loan for $1 mil

Loan Amortization Schedule
The timetable for repaying the interest and principal on a loan.

Loan Commitment
Assurance by a lender to make money available to a borrower on specific terms in return for a fee.

Loan Crowd
The group of member firms that lend or borrow securities needed to cover the positions of customers

Loan Syndication
Group of banks sharing a loan. See

Loan Value
The maximum percentage of the value of securities that a broker can lend to a margin account custome

Loan-To-Value Ratio (LTV)
The ratio of money borrowed on a property to the property's fair market value.

Loaned Flat
Securities lent interest-free between brokers to cover customers' short sale positions.

Local
A futures exchange member who trades securities for his or her own account.

Local Expectations Theory
A form of the pure expectations theory that suggests that the returns on bonds of different maturiti

Local Taxes
Property, sewer, school, or other community paid to a locality. Local taxes are usually deductible f

Lock
Used in the context of general equities. Make a market both ways (bid and offer) either on the bid,

Lock In
To ensure that an individual transacts all his or her business with a sole broker by providing super

Lock-Out
With PAC bond CMO classes, the period before the PAC sinking fund becomes effective. With multifamil

Lock-Up Cds
CDs that are issued with the tacit understanding that the buyer will not trade the certificate. Quit

Lock-Up Option
Often used in risk arbitrage. Privilege offered a white knight (friendly acquirer) by a target compa

Lockbox
A collection and processing service provided to firms by banks, which collect payments from a dedica

Locked In
When an investor is unable to take advantage of preferential tax treatment because of time remaining

Locked Market
A market is locked if the bid price equals the ask price. This can occur, for example, if the market

Log-Linear Least-Squares Method
A statistical technique for fitting a curve to a set of data points. One of the variables is transfo

Lognormal Distribution
Pattern of frequency of occurrence in which the logarithm of the variable follows a normal distribut

Lombard Rate
Applies mainly to international equities. Interest rate the German Bundesbank uses as an upper limit

London Commodity Exchange (LCE)
Merged with the London International Financial Futures and Options Exchange in 1996.

London Metal Exchange (LME)
A market for trading base metals, where traded options contracts are available against the underlyin

London Stock Exchange (LSE)
The U.K.'s six regional exchanges joined together in 1973 to form the stock exchange of Great Britai

Long
One who has bought a contract to establish a market position and who has not yet closed out this pos

Long Bonds
Bonds with a long current maturity. The 'long bond' is the 30-year U.S. Treasury bond.

Long Coupons
(1) Bonds or notes with a long current maturity. (2) A bond on which one of the coupon periods, usua

Long Hedge
The purchase of a futures contract in anticipation of actual purchases in the cash market. Used by p

Long Leg
The part of an option spread in which an agreement to buy the underlying security is made.

Long Position
Owning or holding options (i.e., the number of contracts bought exceeds the number of contracts sold

Long Run
A period of time in which all costs are variable; longer than one year.

Long Straddle
Taking a long position in both a put and a call option.

Long-Term
In accounting terms, one year or longer.

Long-Term Asset
Any asset that has an economic life greater than one year. Liquid items such as cash are considered

Long-Term Assets
Value of property, equipment, and other capital assets minus the depreciation. This is an entry in t

Long-Term Borrowing
Liabilities that represent money borrowed from banks or other lenders to fund the ongoing operations

Long-Term Debt
Total of all debt due after one year including bonds at face value.

Long-Term Debt
An obligation having a maturity of more than one year from the date it was issued. Also called funde

Long-Term Debt Ratio
The ratio of long-term debt to total capitalization.

Long-Term Debt-Capitalization
Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Dete

Long-Term Debt-To-Equity Ratio
A capitalization ratio comparing long-term debt to shareholders' equity.

Long-Term Financial Plan
Financial plan covering two or more years of future operations.

Long-Term Financing
Liabilities repayable in more than one year plus equity.

Long-Term Gain
A profit on the sale of a capital assets held longer than 12 months, and eligible for long-term capi

Long-Term Goals
Financial goals expected to be accomplished in five years or longer.

Long-Term Investor
A person who makes investments for a period of at least five years in order to finance his or her lo

Long-Term Liabilities
Amount owed for leases, bond repayment, and other items due after 1 year.

Long-Term Loss
A loss on the sale of a capital asset held less than 12 months that can be used to offset a capital

Look-Thru
A method for calculating U.S. taxes owed on income from controlled foreign corporations that was int

Lookback Option
An option that allows the buyer to choose as the option strike price any price of the underlying ass

Looking For
In the context of general equities, this describing a buy interest in which a dealer is asked to off

Loophole
A technicality in some legislation or regulation that makes it possible to avoid certain consequence

Loose Credit
Policy by the Federal Reserve Board to make loans less expensive and more available by reducing inte

Loss
The opposite of profit.

Loss Ratio
The ratio of losses paid or accrued by an insurer to premiums collected over a year.

Loss-Control Activities
Actions that an insured person or company takes at the instigation of an insurance company in order

Loss-Of-Income Insurance
Insurance coverage that will pay out income that a policyholder loses as a result of a disability, i

Lots
In the context of general equities, this blocks or portions of trades. Can express a specific transa

Low
In the context of general equities, this is a specific minimum limit required by a seller in executi

Low Balance Method
A method of calculating interest on the basis of the lowest balance of an account over the applicabl

Low Ball
Slang for making an offer well below the fair value of an asset in hopes that the seller may be desp

Low Grade
A bond with a rating of B or lower.

Low Price
The day's lowest price of a security that has changed hands between a buyer and a seller.

Low Price-Earnings Ratio Effect
The tendency of portfolios of stocks with a low price-earnings ratio to outperform portfolios of sto

Low-Coupon Bond Refunding
Refunding of a low-coupon bond with a new, higher-coupon bond.

Lump Sum
A large one-time payment of money.

Macaroni Defense
A tactic used by a corporation that is the target of a hostile takeover bid involving the issue of a

Macaulay Duration
The weighted-average term to maturity of the cash flows from a bond, where the weights are the prese

Macroeconomics
Analysis of a country's economy as a whole.

Magic Of Diversification
The effective reduction of risk (variance) of a portfolio, achieved without reduction to expected re

Mail Float
Time period that checks for payment spend in the postal system.

Maintenance Call
A call for additional money or securities when a margin account falls below its exchange-mandated re

Maintenance Fee
A yearly charge to maintain brokerage accounts, such as asset management accounts or IRAs.

Maintenance Margin Requirement
A sum, usually smaller than but part of the original margin, that must be maintained on deposit at a

Major Exchange
Indicates listing on established national or regional stock exchange.

Major Industry
Each company is classified by its primary business.

Majority Shareholder
A shareholder who is part of a group that controls more than half the outstanding shares of a corpor

Majority Voting
Voting system under which corporate shareholders vote for each director separately. Related

Make A Market
Dealers are said to make a market when they quote bid and offered prices at which they stand ready t

Make Whole Provision
Related to the lump-sum payments made when a loan or bond is called, equal to the NPV of future loan

Making Delivery
Refers to the seller's actually turning over to the buyer the assets agreed upon in a forward contra

Malaysia Commodity Exchange
A subsidiary of the KLSE that trades interest rate futures on the three-month Kuala Lumpur Interbank

Maloney Act
1938 legislation amending the Securities Exchange Act that regulates the OTC market.

Managed Account
An investment portfolio one or more clients entrusted to a manager who decides how to invest it.

Managed Float
Also known as 'dirty' float, this is a system of floating exchange rates with central bank intervent

Management
The people who administer a company, create policies, and provide the support necessary to implement

Management Buying
The acquisition of a controlling interest in a promising business by an outside investment group tha

Management Buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.

Management Fee
An investment advisory fee charged by the financial adviser to a fund typically on the basis of the

Management Goals
A set of conditions a business is striving to achieve. These may include requirements for debt/equit

Management-Closely Held Shares
Percentage of shares held by persons closely related to a company, as defined by the Securities and

Managerial Decisions
Decisions concerning the operation of the firm, such as the choice of firm size, firm growth rates,

Managing Underwriter
The leading firm in an underwriting group, which originates the deal and acts as an agent for the gr

Mandatory Convertibles
A debt instrument that is exchangeable at some point for equity in the form of common stock or a new

Mandatory Redemption Schedule
Schedule according to which bond sinking fund payments must be made.

Manipulation
Dealing in a security to create a false appearance of active trading, in order to bring in more trad

Maple Leaf
A gold, silver, or platinum coin minted in Canada that usually trades at slightly more than its curr