Glossary attachment

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Leveraging

Refers to borrowing funds to purchase a security in order to magnify returns.

Liabilities

Claims made by creditors against a corporation. Liabilities include those due and payable within the year, known as current liabilities (including accounts payable, taxes payable) and those payable after one year, referred to as long-term liabilities (including bonds, bank loans and mortgages).

Limited Liability

The owners of a corporation are responsible only for the amount they paid for their shares in a corporation. They are not personally responsible for any unpaid debts accumulated by the corporation.

Liquidating Value

The sale value of an asset.

Liquidity

(1) The ease with which an investment can be sold or pledged for cash.

(2) The ability of a given market to absorb a reasonable amount of buying and selling of securities at reasonable price changes. (3) A company's cash position: the amount of current assets in relation to its current liabilities.

Load

The commission or cost of acquiring a mutual fund. See Sales Charge.

Long-Term Bond

A bond maturing in ten years or more.

Long-Term Debt

Liabilities that are due in more than one year.

Loss

The sale of an asset at a price lower than the original price or the deficit recorded when expenditures exceed the revenue of a company.

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