Glossary L

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Glossary L

Lead generation

The process of identifying potential customers or clients for a business.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)

    • Lead underwriter

    The investment bank that takes the lead role in managing an initial public offering (IPO).

  • Primary Vs. Secondary Markets: Investment Banking (Defined)

    • Legacy planning

    The process of planning for the transfer of wealth and assets to future generations.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)

    • Legal compliance

    The process of ensuring that a company is following all applicable laws and regulations.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)

    • Legal review

    The process of reviewing legal documents to ensure compliance with applicable laws and regulations.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)

    • Letter of intent (LOI)

    A document outlining the terms of a proposed transaction.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)

    • Leverage

    The use of borrowed money to invest or finance a business.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)

    • Leverage effect

    The amplification of returns or losses due to the use of borrowed funds.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)

    • Leverage ratio

    A measure of a company’s debt relative to its equity.

  • Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
  • Commercial Vs. Investment Banking: Functions and Features (Discussed)

    • Limited partners

    Investors in a partnership who have limited liability and are not involved in the day-to-day operations of the business.

  • Private Equity Vs. Venture Capital: Investment (Comparison)

    • Liquidation

    The process of selling off a company’s assets to pay off its debts.

  • Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)

    • Liquidation preference

    A provision in a contract that gives certain investors priority in receiving payment in the event of a liquidation.

  • Private Equity Vs. Venture Capital: Investment (Comparison)

    • Liquidation Valuation Method

    A method of valuing a company based on the value of its assets in a liquidation scenario.

  • Private Equity Vs. Venture Capital: Investment (Comparison)

    • Liquidity

    The ability to convert assets into cash quickly and easily.

  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)

    • Liquidity event

    An event that causes a sudden need for liquidity, such as a market crash or a sudden increase in demand for cash.

  • IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)

    • Liquidity management

    The process of managing a company’s cash and other liquid assets to ensure that it can meet its financial obligations.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)

    • Liquidity providers

    Financial institutions that provide liquidity to the market.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)

    • Liquidity Provision

    The act of providing liquidity to the market.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Buy Side Vs. Sell Side: Investment Banking (Clarified)

    • Liquidity Provision Services

    Services provided by financial institutions to ensure that there is sufficient liquidity in the market.

  • Primary Vs. Secondary Markets: Investment Banking (Defined)

    • Liquidity ratios

    Financial ratios that measure a company’s ability to meet its short-term obligations.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)

    • Liquidity risk

    The risk of not being able to meet financial obligations due to a lack of available funds.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Private Equity Vs. Venture Capital: Investment (Comparison)

    • Liquidity risk management

    The process of identifying, assessing, and managing the risk of not being able to meet financial obligations.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)

    • Loan-to-deposit ratio (LDR)

    A measure of a bank’s liquidity that compares its loans to its deposits.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
  • Private Equity Vs. Venture Capital: Investment (Comparison)

    • Lock-up Period

    A period of time after an initial public offering during which insiders are prohibited from selling their shares.

  • IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)

    • Long/short equity strategy

    An investment strategy that involves buying stocks that are expected to increase in value and shorting stocks that are expected to decrease in value.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)

    • Loyalty programs

    Programs that reward customers for their loyalty to a company or brand.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)