Leverage-Buy-Out

The financing of a corporate takeover largely through borrowed funds (loans), with the assets of the target company usually serving as the security for the loan.

Lien

The right which can be exercised by an unpaid creditor over the property of a debtor in his possession.

Limit Order

A directive (order) given to a stockbroker by his client to buy or sell a given quantity of a security at a specified price. The client may also state the period for which the order would be valid.

Liquidity

The ease at which a financial instrument can be converted into cash. An instrument which can be quickly converted is said to be liquid while one which cannot be easily converted is regarded as illiquid. A stock market is considered liquid when it can absorb large volumes of trading without significant change in prices and when securities can be easily converted into cash.

Listed Options

Options which are traded on an exchange.