What Is a Liquidity Trap? A liquidity trap is an adverse economic situation that can occur when consumers and investors hoard cash rather than spending or investing it even when interest rates are low, stymying efforts by economic policymakers to stimulate economic growth. The term was first used by economist John Maynard Keynes, who defined
What Is a Liquid Market? A liquid market a one with many available buyers and sellers and comparatively low transaction costs. The details of what makes a market liquid may vary depending on the asset being exchanged. In a liquid market, it is easy to execute a trade quickly and at a desirable price because
What is the Lisbon Treaty? The Lisbon Treaty, also known as the Treaty of Lisbon, updated regulations for the European Union, establishing a more centralized leadership and foreign policy, a proper process for countries that wish to leave the Union, and a streamlined process for enacting new policies. The treaty was signed on December 13
What Is a Lis Pendens? A lis pendens is an official notice to the public that a lawsuit involving a claim on a property has been filed. Lis pendens is connected to the concept that a property buyer must assume any litigation that exists pertaining to the property. If a bank is suing the owner of a
What Is “Listed”? A listed company issues shares of its stock for trading on a stock exchange. If a company is listed in the U.S., it has met the requirements of the Securities and Exchange Commission (SEC) for selling shares to the public and has been accepted for trading on an exchange such as the
What Is a Listed Security? A listed security is a financial instrument that is traded through an exchange, such as the NYSE or Nasdaq. When a private company decides to go public and issue shares, it will need to choose an exchange on which to be listed. To do so, it must be able to
What Are Listing Requirements? Listing requirements comprise the various criteria and minimum standards established by stock exchanges, such as the New York Stock Exchange (NYSE), that companies must meet to list their shares for trading. A company will be allowed to list shares for trading only if it meets initial as well as ongoing requirements.
The list price, in the real estate world, is the suggested gross sale price of real estate property when it is put on the market. Breaking Down List Price The listing agreement is a legal contract between the property owner and the real estate broker. The type of listing agreement determines the nature of the
What Is a Living Trust? A living trust is a legal arrangement established by an individual (the grantor) during their lifetime to protect their assets and direct their distribution after the grantor’s death. It is an estate planning tool that can help family members and beneficiaries avoid a lengthy, public, complex, and sometimes costly, probate
What Is a Limited Partnership (LP)? A limited partnership (LP)—not to be confused with a limited liability partnership (LLP)—is a partnership made up of two or more partners. The general partner oversees and runs the business while limited partners do not partake in managing the business. However, the general partner of a limited partnership has
