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Leveraged Buyout (LBO) – a transaction in which a public company is taken private, financed largely by debt. Usually an LBO occurs when there is an opportunity to improve a company’s operations through cost-cutting and divestitures. The pressure of repaying the debt creates a strong motivation to reduce costs and improve profits.
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.
Listed Security – a stock or bond listed on an exchange, and can therefore be traded on that exchange.
Loaded Mutual Fund – a fund that has an upfront charge to purchase or a charge to sell the shares rather than built in charges only.
Long Position – occurs when an individual owns securities. Being ‘long’ 100 XYZ means that the investor owns 100 XYZ.
Long Position (Options) – an options position where a person has executed one or more options trades where the net result is that he or she is an owner or holder of options (i.e. the number of contracts bought exceeds the number of contracts sold).
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 – an 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 Liabilities – amount owed for leases, bond repayment and other items due after 1 year.
Low Price – the lowest (intraday) price of a stock over a certain period of time.