Liquidity Management

Liquidity management takes one of two forms based on the definition of liquidity. One type of liquidity refers to the ability to trade an asset, such as a stock or bond, at its current price. The other definition of liquidity applies to large organisations, such as financial institutions. Banks are often evaluated on their liquidity,…

Liquidity

The current assets of your business are its cash or assets such as stock, work in progress, or debts that can be turned into cash.

Liquidation

Bringing a business to an end and selling off assets for cash to repay debts. Tax authorities are usually paid first while shareholders are paid last.

Limited liability

This limits a partner or investor’s loss to the amount they have invested.

Licensee: (Referred to as Associate)

Relating to the company EFM – A finance professional who is part of EFM and is authorised to trade using the EFM name.

Libor

Acronym for London Inter Bank Offered Rate. The benchmark rate, calculated daily at which banks in London lend unsecured money to each other for the short-term.

Liability

A financial obligation or debt, recorded on the right side of the balance sheet.

Leverage

This alternative form of gearing occurs when borrowed capital is used for an investment with the expectation that the resulting profits will be more than the interest payable. The more a business borrows over this, the more highly leveraged it is.

Lehman Brothers

Previously the 4th largest investment Bank in America which went bankrupt in 2008 and sparked off the most severe phase of the financial crisis.

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