| Keogh
Plan |
Special
accounts where you can save and invest, and the taxes are deferred
until money is withdrawn. These plans are subject to frequent changes
in law with respect to the deductibility of contributions. Withdrawals
of tax deferred contributuons are taxed as income, including the
capital gains from such accounts. (see IRA) |
| |
|
| Last
Sale Reporting |
An
electronic entry by NASD Members to The Nasdaq Stock Market of the
price and the number of shares involved in a transaction in a Nasdaq
security. The trade reported must be submitted to Nasdaq with 90
seconds of the execution of the trade. |
| Legal
List |
A
list of investments selected by various states in which certain institutions
and fiduciaries, such as insurance companies and banks, may invest.
Legal lists are often restricted to high quality securities meeting
certain specifications. (see Prudent
Man Rule) |
| Leverage |
The
effect on a company when the company has bonds, preferred stock,
or both outstanding. Example: If the earnings of a company with 1,000,000
common shares increases from $1,000,000 to $1,500,000 - earnings
per share would go from $1 to $1.50, or an increase of 50 percent.
But if earnings of a company that had to pay $500,000 in bond interest
increased that much - earnings per common share would jump from 50
cents to $1 a share, or 100 percent. |
| Liabilities |
All
the claims against a corporation. Liabilities include accounts, wages
and salaries payable; dividends declared payable; accrued taxes payable;
fixed or long-term liabilities, such as mortgage bonds, debentures
and bank loans. (see Assets, Balance
Sheet) |
| Limit
Order |
An
order to buy a stock at or below a specified price or to sell a stock
at or above a specified price. A limit order becomes a market
order when and if a security reaches the specific price. |
| Liquidate |
When
a company fails, the process of converting all of its assets back
into cash and distributing it to those with a claim on it. |
| Liquidity |
(1)
How easily one's assets can be converted back into cash. For example,
money in an account that can't be withdrawn for ten years is not
very liquid.
(2) The ability of the market in a particular security to absorb a reasonable
amount of buying or selling at reasonable price changes. Liquidity is one
of the most important characteristics of a good market. |
| Listed
Stock |
The
stock of a company that is traded on a securities exchange. The various
stock exchanges have different standards for listing. |
| Load |
The
portion of the offering price of shares of open-end investment companies
in excess of the value of the underlying assets. Covers sales commissions
and all other costs of distribution. The load is usually incurred
only on purchase, there being, in most cases, no charge when the
shares are sold (redeemed). (see Investment
Company) |
| Load
Fund |
A mutual
fund with shares sold at a price including a sales charge -
typically 4% to 8% of the net amount indicated. Some "no-load" funds
have distribution fees permitted by article 12b1 of the Investment
Company Act; these are typically 0.25%. A "true no-load" fund
has neither a sales charge nor 12b1 fee. A load implies that the
fund purchaser receives some investment advice or other service
worthy of the charge. Such funds may be stock, bond or commodity
funds, with conservative or aggressive objectives. |
| Locked
In |
Investors
are said to be locked in when they have profit on a security they
own but do not sell because their profit would immediately become
subject to the capital gains tax. |
| Long
Position |
Signifies
ownership of securities. "I am long 100 U.S. Steel" means
the speaker owns 100 shares. (see Short
Position, Short
Sale) |
| Long
Term Assets |
Value
of property, equipment and other capital assets minus the depreciation.
This is an entry in the bookkeeping records of a company, usually
on a "cost" basis and thus does not necessarily reflect
the market value of the assets. |
| Long
Term Debt |
Value
of obligations of over 1 year that require that interest be paid. |
| Long
Term Debt / Capitalization |
Indicator
of financial leverage. Shows long term debt as a proportion of the
capital available. Determined by dividing long term debt by the sum
of long term debt, preferred
stock and common
stockholders' equity. |
| Long
Term Gain |
A
gain on the sale of a capital asset where the holding period was
twelve months or more and the profit was subject to the long term
capital gains tax. |
| Long
Term Liabilities |
Amount
owed for leases, bond repayment and other items due after 1 year. |
