Investing glossary
Plain-language definitions of the investing terms you meet in filings, in the news and in Finzer.
13 terms, all of them on this page
L
Labor Force Participation Rate
The labor force participation rate measures the share of working-age people who are either employed or actively looking for work. Learn how it shapes growth, inflation, and investment decisions.
Labour Market
A labour market is the supply of workers and demand for jobs in an economy, tracked through metrics like employment, unemployment, and wage growth. Learn how it drives inflation, central bank policy, and stock returns.
LEI (Legal Entity Identifier)
A Legal Entity Identifier (LEI) is a 20-character global ID code that uniquely identifies companies and institutions in financial transactions. Learn why it exists, where investors encounter it, and how it improves market transparency.
Leverage
Leverage is the use of borrowed money or financial instruments to amplify investment exposure, returns, and losses. Learn how leverage works, where it shows up, and how to use it without blowing up your portfolio.
Leverage Ratio
A leverage ratio measures how much debt a company or financial institution uses relative to its capital or assets. Learn how to read it, why it matters for risk, and how investors use it in practice.
Leveraged Buyout
A leveraged buyout is the acquisition of a company using a large amount of borrowed money, typically 60-80% of the purchase price. Learn how LBOs work, why private equity uses them, and what investors should watch for.
Leveraged ETF
A leveraged ETF is an exchange-traded fund designed to deliver a multiple (typically 2x or 3x) of an index’s DAILY return using derivatives and debt. Learn how they really work, why they’re risky, and when-if ever-they make sense for investors.
Liabilities
Liabilities are a company’s financial obligations-debts or payments it owes to others-that must be settled in the future. Learn how to analyze liabilities, why they matter to investors, and how to spot risk before it shows up in the stock price.
Limit Order
A limit order is an instruction to buy or sell a security at a specific price or better. Learn how limit orders work, when to use them, and how they protect investors from bad prices.
Liquidity
Liquidity is how quickly and easily an asset or company can be converted into cash without materially affecting its price. Learn how liquidity works, why it matters in markets and businesses, and how investors should use it.
Liquidity Ratios
Liquidity ratios measure a company’s ability to meet short-term obligations using current assets. Learn how to interpret them, what drives them, and how investors actually use them.
Liquidity Risk
Liquidity risk is the danger that you can’t buy or sell an investment quickly without taking a meaningful price hit. Learn what causes it, how it shows up in real markets, and how smart investors manage it.
Lock-up Period
A lock-up period is a fixed timeframe after an IPO when insiders are legally restricted from selling their shares. Learn why it matters, how it affects stock prices, and how investors should trade around it.