Glossary of Stock Investing Terms: K-L
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This article is from the Glossary of Stock Investing Terms.
Glossary of Stock Investing Terms: K-L
- Keogh plan:
A qualified tax-deferred retirement plan for self-employed individuals.
- Leverage:
The use of borrowed capital to increase the return of an investment.
- Liability:
The legal obligation to pay a debt. Current liabilities are debts payable within twelve months; long-term liabilities are debts payable over a period of more than twelve months.
- Limit order:
An order to a broker to buy a security at or below a specified price (or to sell at or above a specified price).
- Liquidity:
The ease and certainty with which an asset can be converted into cash.
- Long:
Or Long Position. Describes the owning of a security. An owner of shares of McDonald's Corp. is said to be "long McDonald's" or "has a long position in McDonald's."
- Long term assets:
On the balance sheet, the value of a company's property, equipment and other capital assets, less depreciation. These are usually recorded "at cost" and so do not necessarily reflect the market value of the assets.
- Long term debt :
Loans with obligations of over one year on which interest is paid.
- Long term debt/capitalization:
A ratio that indicates a company's financial leverage. It is calculated by dividing long term debt by the capital available to the company (the sum of long term debt, preferred stock and stocholders' equity).
- Long term liabilities:
A company's liabilities for leases, bond repayments and other items due in more than one year.
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