Liability

• A liability is an obligation a person or company owes to another party — typically a sum of money but also goods, services,…

Levy

A levy is the legal seizure of property to satisfy an unpaid debt. In the tax context, a levy is used by tax authorities…

Leveraged ETF

Key takeaways – A leveraged exchange-traded fund (LETF) uses derivatives and/or borrowing to amplify the daily returns of an underlying index or asset (commonly…

leveraged buyback

• A leveraged buyback is a share repurchase funded primarily with debt. It reduces shares outstanding and can boost metrics like earnings per share…

Leverage Ratios

Key takeaways – A leverage ratio measures how much debt an entity uses relative to assets, equity, or earnings. – Multiple leverage ratios exist;…

letter of guarantee

• A letter of guarantee (LG) is a bank-issued promise to a beneficiary that the bank will pay if the bank’s customer (the applicant)…

Letter of Credit (LC)

A letter of credit is a written commitment from a bank guaranteeing that a buyer’s payment to a seller will be made on time…

Lemon Problem

Introduction The “lemon” problem describes what happens when sellers know more about product quality than buyers. When buyers can’t tell high-quality goods from low-quality…

Lehman Formula

Key Takeaways – The Lehman Formula is a tiered (sliding‑scale) commission model developed by Lehman Brothers in the 1960s to calculate advisory/placement fees on…

Lehman Brothers

Key takeaways – Lehman Brothers was a major U.S. investment bank that filed the largest bankruptcy in U.S. history on Sept. 15, 2008, after…