Lorenz Curve
Overview A Lorenz curve is a graphical way to show how a resource (most commonly income or wealth) is distributed across a population. It…
LongShort Funds
Key takeaways – A long/short fund takes both long positions (stocks expected to rise) and short positions (stocks expected to fall) to generate returns…
Long
• A long position means you own (or have bought) an asset or contract expecting its price will rise over time. It expresses bullish…
Long term investments
• A long-term investment is an asset a company intends to hold for more than one year (examples: equity stakes in other companies, long-dated…
Long Term Equity Anticipation Securities (LEAPS)
Key takeaways – LEAPS are standard option contracts with expiration dates longer than one year (often up to three years). – A LEAPS call…
Long Hedges
Overview A long hedge is a hedging strategy in which a buyer takes a long position in futures (or similar derivatives) to lock in…
London Metal Exchange LME
• The London Metal Exchange (LME) is the world’s primary exchange for trading futures and options on base metals (aluminum, copper, zinc, lead, nickel,…
Lockbox Banking
Lockbox banking is a bank-operated receivables service in which a company directs customer payments to one or more post office boxes (or an electronic…
Loan
A loan is a form of credit in which a lender (bank, credit union, finance company, government, or individual) advances a specific sum of…
Loan to Value (LTV) Ratio
Key takeaways – Loan-to-value (LTV) = mortgage amount ÷ appraised property value, expressed as a percentage. – Lenders use LTV to gauge default risk:…