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Legal Opinion - Opinion by an attorney concerning the legal compliance of a security.
Letter of Intent - Written agreement between two parties stating an understanding to conduct business but, not a binding contract to do so.
Level One - Basic service of the Nasdaq stock market that displays current bid and ask quotes on many over-the-counter stocks.
Level Two - Service of the Nasdaq stock market that displays current bid and ask quotes plus, the bids and askeds quotes from all market makers in a particular stock.
Level Three - Service of the Nasdaq stock market that allows a market maker or registered broker-dealer to enter a bid or ask on the electronic trading system.
Leverage - In an investment context, the act of controlling more than one unit of a security through another device, such as buying stocks on margin, options, warrants, etc., for the purpose of enhancing returns or value. In a corporate context, the relation of debt to equity in a firm's financial capital structure.
Leveraged Buyout - Act purchasing assets or entire corporations through the use of debt. The proceeds from debt borrowings allow a shareholder or a group owning a minority stake in a company the means of acquiring enough stock from other shareholders to gain control of the corporation.
Liability - Any debt or monies owed by a corporation including but, not limited to accounts payable, preferred shares, bank lines of credit and bond issuances.
Limit Order - Order to execute a trade at a specific price.
Limited Partnership - A form of incorporation involving ownership by two classes of investors, limited and general partners. In either case, all income or losses of the partnership are passed on to the partners based on each partner's percentage ownership. General partners manage the partnership and limited partners are passive owners. In the 1980’s limited partnership interests were commonly sold to investors for their tax advantages and potential for fixed income benefits. However, most limited partnerships are not actively bought and sold in secondary markets and are extremely illiquid investments. (See "General Partnership")
Liquid Asset - Asset that may be easily turned into cash including but, not limited to most stocks, bonds, short-term certificates and money market funds.
Liquidity - Relative measure of how easily a security or other asset may be converted into cash. In stocks, liquidity is often associated with a security’s average daily trading volume; the higher the volume, the more liquid the stock.
Listed Stock - Term referring to stocks listed on one of the three major U.S. stock exchanges: New York, American or Nasdaq. Companies whose shares are quoted on the OTC Bulletin Board or the National Quotation Bureau’s "Pink Sheets" are considered "unlisted" stocks.
Load Fund - Mutual fund that deducts a sales charge or "load" from the net asset value of shareholder investments.
Long - Trader's term referring to ownership of a security. "His account was long 100 shares of XYZ" would mean a client owned 100 shares of XYZ.
Long Bond - Any bond that matures in more than 10 years, particularly the 30-year Treasury bond. Long bonds typically carry higher coupon rates and yields but are subject to greater potential price volatility.
Long-Term Gain or Loss - Gain or loss from the sale of an asset or security which was held by its owner for more than one year. | 
