What Is a Linear Relationship? A linear relationship (or linear association) is a statistical term used to describe a straight-line relationship between two variables. Linear relationships can be expressed either in a graphical format where the variable and the constant are connected via a straight line or in a mathematical format where the independent variable is
What Is a Line Chart? A line chart is a graphical representation of an asset’s historical price action that connects a series of data points with a continuous line. This is the most basic type of chart used in finance, and it typically only depicts a security’s closing prices over time. Line charts can be
What Is a Line Graph? A line graph—also known as a line plot or a line chart—is a graph that uses lines to connect individual data points. A line graph displays quantitative values over a specified time interval. In finance, line graphs are commonly used to depict the historical price action of an asset or
What Is the Line of Best Fit? Line of best fit refers to a line through a scatter plot of data points that best expresses the relationship between those points. Statisticians typically use the least squares method (sometimes known as ordinary least squares, or OLS) to arrive at the geometric equation for the line, either
What Are Line of Business Limitations? Line of business limitations is a federal income tax rule applied to fringe benefits that employers provide their employees. It states that if a company is engaged in multiple lines of business and an employee receives a fringe benefit from a line of the company’s business that she does
What Is a Line of Credit (LOC)? A line of credit (LOC) is a preset borrowing limit that can be tapped into at any time. The borrower can take money out as needed until the limit is reached. As money is repaid, it can be borrowed again in the case of an open line of
What Is Linkage? Linkage is the ability to buy a security on one financial exchange and sell that same security on another exchange. Certain depositary receipts, such as American Depositary Receipts (ADRs), allow for linkage, which means that an investor can purchase shares of a company on a foreign exchange, such as the Toronto Stock
What Are the Lion Economies? Lion economies are a nickname for Africa’s growing economies, which had a collective Gross Domestic Product (GDP) of roughly $1 trillion in 2021. These economies often include: EthiopiaGhanaKenyaMozambiqueNigeriaSouth Africa Key sectors contributing to Africa’s collective GDP growth include natural resources, retail, agriculture, finance, transportation, and telecommunications. Improvements in political stability and economic
What Is a Lipper Leader? The term Lipper Leader refers to a mutual fund rating system. The system ranks the success of funds based on whether they meet a specific set of goals. Financial professionals recognize Lipper’s benchmarking and classifications as an industry-standard. It’s a great tool for investors to use to match funds with
What Is Liquefaction? Liquefaction is a phenomenon in which the soil underneath a building can become unstable due to violent ground movements such as earthquakes or construction blasts. The term is widely used in the insurance industry, since liquefaction can cause major damage to buildings and utilities infrastructure, resulting in insurance claims. Key Takeaways Liquefaction
