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
What Are Liquid Alternatives? Liquid alternative investments (or liquid alts) are mutual funds or exchange-traded funds (ETFs) that aim to provide investors with diversification and downside protection through exposure to alternative investment strategies. These products’ selling point is that they are liquid, meaning that they can be bought and sold daily, unlike traditional alternatives which offer monthly
What Is a Liquid Asset? A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities. Both individuals and businesses can be concerned with tracking liquid assets as a portion of their net worth. For the purposes
What Are Liquidated Damages? Liquidated damages are presented in certain legal contracts as an estimate of otherwise intangible or hard-to-define losses to one of the parties. It is a provision that allows for the payment of a specified sum should one of the parties be in breach of contract. Key Takeaways Liquidated damages are presented
What is a Liquidating Dividend A liquidating dividend is a type of payment that a corporation makes to its shareholders during a partial or full liquidation. For the most part, this form of distribution is made from the company’s capital base. As a return of capital, this distribution is typically not taxable for shareholders. A
What Is the Lifelong Learning Plan? Lifelong Learning Plan refers to a provision applicable to the Canadian Registered Retirement Savings Plan (RRSP). The plan allows RRSP contributors a non-taxable temporary withdrawal of up to $20,000 from their accounts in order to finance their education or that of their spouse or common-law partner (CLP). The provision
What Is a Life Option? The life option is one example of a payout scheme for an annuity contract. It guarantees periodic payments to the annuitant for the remainder of their life. Since that timeline is, by definition, unknown, the life option involves some financial risk for both the annuitant and the insurance company making
