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FINANCIAL DICTIONARY & GLOSSARY: LI - LO
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liberalism - the belief that self interest, competition and the price mechanism are adequate to regulate an economy.

LIBOR - the London inter-bank offered rate, the rate at which commercial banks in London lend each other Euro-currencies.

licensing - selling the right to a manufacturing process, trademark, patent, etc., usually in a foreign market.

limited company or corporation - one that is only liable for the amount of capital that shareholders have invested, and not for debts greater than this amount.

limited liability - responsibility for debts up to the value of the company's share capital.

liquid assets or available assets - anything that can quickly be turned into cash.

liquidate - to sell personal assets in order to pay creditors.

liquidation or receivership or winding up - the compulsory sale of the assets of a bankrupt company.

liquidator or receiver or administrator - person appointed by a court who realizes (turns into cash) a company's assets in order to repay creditors.

liquidity - cash and other liquid assets in excess of current liabilities; the ease with which an asset can be spent or sold.

liquidity preference - the public's demand for money in cash or current bank accounts; money which is saved rather than spent or lent.

listed or quoted companies - companies whose shares are traded on a stock exchange.

list price - the manufacturer's or wholesaler's recommended price, before any discounts or special reductions are offered.

Lloyd's - large international insurance market in London; an association of underwriters and brokers, trading in groups called syndicates.

LM curve - shows the interest rates and income levels at which the supply and demand for money (liquidity preference) are equal.

loan - something lent (usually money) that will have to be given or paid back (usually with interest).

long position - buying a security, either for investment purposes or in anticipation of future price rises.

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