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LEAPS
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Long-term equity options traded on US
exchanges and over-the-counter (OTC). Instead of expiring in two near-term
and two farther out months as most equity options do, LEAPS expire in two
to five years, giving the buyer a longer time for his strategy to come to realization.
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Letter of Authorization (LOA)
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A statement that certifies a particular
action on behalf of the account holder(s).
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Limit Order
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An order to buy or sell a stated amount of
stock at a specified price or better.
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Liquid Assets
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Refers to cash or items easily convertible
to cash. For example: money-market fund shares, US Treasury bills, bank deposits.
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Liquidation
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To convert investment securities into cash.
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Liquidity
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The ability to have ready access to invested
money.
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Liquidity Risk
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The ability to easily convert securities into
cash. Determined by how active the secondary market is for a particular
security.
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Lot
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Any group of goods or services making up a
transaction. A Round Lot is a generally accepted unit of trading on a
securities exchange. On the NYSE, a round lot is 100 shares of stock and
$1000 or $5000 par value for bonds.
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