What Is Limited Recourse Debt? Limited recourse debt is a debt in which the creditor has limited claims on the loan if the borrower defaults. Limited recourse debt sits in between secured debt and unsecured debt in terms of the backing behind the loan. Limited recourse debt is also referred to as partial recourse debt.
What Is a Limit Move? A limit move acts as a market circuit breaker and is the maximum amount of change that the price of a commodity futures contract is allowed to undergo in a single day. This amount gets its basis from the previous day’s closing price. Trades are not permitted to rise above or drop
What Is a Limit Order? A limit order in the financial markets is a direction to purchase or sell a stock or other security at a specified price or better. This stipulation allows traders to better control the prices at which they trade. A limit can be placed on either a buy or a sell
What Is a Limit Order Book? A limit order book is a record of outstanding limit orders maintained by the security specialist who works at the exchange. A limit order is a type of order to buy or sell a security at a specific price or better. A buy limit order is an order to buy at
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
