Glossary

Leading Indicators	Market statistics that signal the state of the economy for a given period of time, such as unemployment rate, housing starts, and change in money supply.
Legal Entity	A person or organization that can legally enter into a contract, and may therefore be sued for failure to comply with the terms of the contract.
Legislation	Written and approved laws.
Lending Securities	Securities borrowed from a broker's inventory, other margin accounts, or from other brokers when a customer makes a short sale and the securities must be delivered to the buying customer's broker.
Leverage	The ratio of debt to equity to finance a company's operations and new projects. A company is highly leveraged if it is using a large proportion of debt (i.e., bonds or loans) versus equity to finance its operations.
Liabilities	The claims against a corporation, including, but not limited to, accounts payable, salaries payable, dividends declared payable, debenture bonds, and bank loans.
Lien	An attachment that gives the lender the right to seize the personal ownership of a borrower who has not fulfilled the obligations of the loan, but prevents the lender from seizing real ownership.
Limit Down	The minimum price change allowed for a commodity futures contract per trading day.
Limit Order	An order to buy or sell a stock at a customer specified price.
Limit Up	The maximum price change allowed for a commodity futures contract per trading day.
Linkage	The ability to buy or sell a contract on one exchange and sell or buy the contract on another exchange.
Liquid Asset	Asset that is easily and cheaply turned into cash-notably, cash itself and short-term securities.
Liquidation	Occurs when a firm's business is terminated. Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders. Any transaction that offsets or closes out a long or short position.
Liquidity	Ease with which a security can be traded on the market.
Listed Securities	Stock or bond that has been accepted for trading at the Amman Stock Exchange.
Loan	Temporary borrowing of a sum of money.
Locked-in Trades	Matched trades which are guaranteed to settle as initially entered on trade date.
Long	The position of an individual who has bought financial instruments.
Low Price	The day's lowest price of a security that has changed hands between a buyer and a seller.