Super Finance Glossary
Over 10,000 financial glossary terms...
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Limitation On Subsidiary Borrowing
Definition: A bond covenant that restricts in some way a firm's ability to borrow at the level of firm subsidiary.
Definition: A bond covenant that restricts in some way a firm's ability to borrow at the level of firm subsidiary.
Limited Company
Definition: A form of business commonly used in the U.K. comparable to incorporation in the U.S.
Definition: A form of business commonly used in the U.K. comparable to incorporation in the U.S.
Limited Discretion
Definition: Permission by a client that allows a broker to make certain stock and option trades without first consulting the client about the trade.
Definition: Permission by a client that allows a broker to make certain stock and option trades without first consulting the client about the trade.
Limited Flexibility Exchange Rate System
Definition: The International Monetary Fund's name for an exchange rate system with a managed float.
Definition: The International Monetary Fund's name for an exchange rate system with a managed float.
Limited Partner
Definition: A partner who has limited legal liability for the obligations of the partnership.
Definition: A partner who has limited legal liability for the obligations of the partnership.
Limited Partnership
Definition: A partnership that includes one or more partners who have limited liability.
Definition: A partnership that includes one or more partners who have limited liability.
Limited Payment Policy
Definition: Life insurance providing full life protection but requiring premiums for only part of the customer's lifetime.
Definition: Life insurance providing full life protection but requiring premiums for only part of the customer's lifetime.
Limited Recourse
Definition: A term describing a type of loan in which the lender has limited or no claim against the parent company if the collateral is insufficient to repay the debt. See:Nonrecourse.
Definition: A term describing a type of loan in which the lender has limited or no claim against the parent company if the collateral is insufficient to repay the debt. See:Nonrecourse.
Limited Risk
Definition: The risk inherent in options contracts, which is much lower than that of a futures contract, which has unlimited risk. The maximum loss in buying a call option, for example, is the premium paid for the option.
Definition: The risk inherent in options contracts, which is much lower than that of a futures contract, which has unlimited risk. The maximum loss in buying a call option, for example, is the premium paid for the option.
Limited Warranty
Definition: A warranty with certain conditions and limitations on the parts covered, type of damage covered, and/or time period for which the agreement is good.
Definition: A warranty with certain conditions and limitations on the parts covered, type of damage covered, and/or time period for which the agreement is good.
Limited-liability Instrument
Definition: A security, such as a call option, in which the owner can lose only the initial investment.
Definition: A security, such as a call option, in which the owner can lose only the initial investment.
Limited-tax General Obligation Bond
Definition: A general obligation bond of a government backed by specified or constrained revenue sources.
Definition: A general obligation bond of a government backed by specified or constrained revenue sources.
Line Of Credit
Definition: An informal loan arrangement between a bank and a customer allowing the customer to borrow up to a prespecified amount.
Definition: An informal loan arrangement between a bank and a customer allowing the customer to borrow up to a prespecified amount.
Linear Programming
Definition: Technique for finding the maximum value of some equation, subject to stated linear constraints.
Definition: Technique for finding the maximum value of some equation, subject to stated linear constraints.
Linear Regression
Definition: A statistical technique for fitting a straight line to a set of data points.
Definition: A statistical technique for fitting a straight line to a set of data points.
Linking Method
Definition: Method for calculating rates of return that multiplies one plus the interim rate of return.
Definition: Method for calculating rates of return that multiplies one plus the interim rate of return.
Lintner's Observations
Definition: John Lintner's work (1956) suggests that dividend policy is related both a target level, and to the speed of adjustment of change in dividends.
Definition: John Lintner's work (1956) suggests that dividend policy is related both a target level, and to the speed of adjustment of change in dividends.
Lipper Mutual Fund Industry Average
Definition: The average level of performance for all mutual funds, as reported by Lipper Analytical Services.
Definition: The average level of performance for all mutual funds, as reported by Lipper Analytical Services.
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