Restrictions on Asset Dispositions in Bond Covenants

Highlights,Limits on Asset Sales,– Companies face restrictions on selling key assets to protect bondholder interests.,Ensuring Financial Stability,– T...

Understanding Lock-Up CDs and Their Role in Banking

Highlights,Restricted Trading:,Buyers agree not to sell or transfer the certificate.,Bank Safekeeping:,Issuing banks often retain custody to enforce t...

Understanding Limit Price and Maximum Price Fluctuation

Highlights,Limit Price Defined:,A predetermined price level set for buying or selling an asset.,Market Stability:,Helps control price volatility by ca...

Limit Order Book

Highlights,A structured record of unexecuted limit orders managed by a specialist.,Orders are prioritized based on price and time of submission.,Ensur...

Understanding Lock-In Agreements in Brokerage Services

Highlights,Lock-in agreements ensure a client exclusively transacts with a single broker.,Brokers offer superior services to secure a steady volume of...

Understanding Limit-on-Close Orders in Stock Trading

Highlights:,Specifies a buy/sell order at the closing price, only if it meets the limit.,Ensures execution at a preferred price while targeting end-of...

Understanding Locational Arbitrage in Currency Trading

Highlights:,Profits from exchange rate differences between banks.,Involves buying currency at a lower rate and selling at a higher rate.,Requires quic...

Local Expectations Hypothesis (LEH): A Theory on Bond Returns

Highlights:,LEH states that bonds with similar characteristics, except maturity, yield the same holding-period return.,It assumes short-term interest...

Understanding Local Taxes

Highlights:,Local taxes fund essential community services and infrastructure.,They include property, school, and utility taxes imposed by local govern...

Understanding Trading Limits

Highlights:,Trading limits regulate the maximum amount of securities one can trade.,They help manage risk and prevent excessive financial exposure.,Di...

Loan-to-Value Ratio (LTV) and Its Significance

Highlights,Measures Borrowing Risk,– LTV determines the risk level of a mortgage or loan.,Impacts Loan Terms,– Higher LTV ratios lead to stricter lend...

Loan Syndication and Its Role in Large-Scale Financing

Highlights,Loan syndication involves multiple banks collaborating to provide a single large loan.,It helps distribute risk among lenders while meeting...

Loan Crowd

Highlights:,Historical term from the 1920s and 1930s financial markets.,Comprised firms that lent or borrowed securities for short sellers.,Operated a...

Understanding the Loan Preference Principle

Highlights,Cost Consistency Across Currencies,– A covered loan remains the least expensive option in all currencies.,Exchange Rate Neutrality,– Curren...

Loan Amortization Schedule

Highlights,Structured plan for repaying loan principal and interest.,Ensures systematic reduction of debt over time.,Helps borrowers manage finances w...

Understanding Load-to-Load Payment Arrangement

Highlights,Sequential Payments:,Customers pay for the previous delivery when receiving the next one.,Cash Flow Management:,Helps businesses maintain l...

Load Fund

Highlights,Charges a sales fee, typically between 4% to 8%, on mutual fund investments.,Some no-load funds impose distribution fees under Article 12b-...

Lloyd's of London: The World's Leading Insurance Marketplace

Highlights,A global marketplace for insurance and reinsurance.,Operates through syndicates that underwrite various risks.,Provides specialized coverag...

LKA: The ISO Country Code for Sri Lanka

Highlights,International Recognition,– LKA is the official three-letter ISO code for Sri Lanka.,Global Standardization,– Used in trade, banking, and i...

Understanding Living Benefits in Life Insurance

Highlights,Living benefits allow policyholders to access life insurance funds while still alive.,Typically available in cases of critical, chronic, or...