Barclays Stockbrokers Glossary
Glossary L

L

Lapse
An option "lapses" if it expires worthless, that is, it has no intrinsic value on expiry.
 
Lapsed rights premium
If you do not take up the rights issue, and decide to let the offer lapse, the company may decide to issue to you a lapsed rights premium. The issue of a premium is at the discretion of the company. For clients that lapse, the nil paid shares will be removed from their account once the issue has expired.
 
Letter of Allotment
Confirmation of the number of shares allotted to a shareholder.
 
Letter of Indemnity
In a case where the original share certificate has been lost, you will need to complete a letter of indemnity. This is basically a request to the registrar to issue new stock or share certificates to replace an original which has been lost, destroyed or stolen. There may be a charge for this.
 
Letter of Renunciation
The form on the back of an allotment letter which enables the client to pass on a share entitlement received through a rights issue.
 
Leverage
Any technique that multiplies the extent of gains and losses, sometimes called ‘gearing’. Often this involves the use of financial instruments or borrowed capital to increase the potential return of an investment, whilst usually causing a corresponding increase in the magnitude of possible loss. Accordingly, leveraged investing usually carries significant risk.
 
Leveraged ETC
A t type of exchange traded commodity which uses financial derivatives to attempt to magnify the returns of an underlying index. Leveraged ETCs can magnify both gains and losses in equal measure, making them very high risk investments.


Leveraged ETF

A type of exchange traded fund which uses financial derivatives to attempt to magnify the returns of an underlying index. Leveraged ETFs can magnify both gains and losses in equal measure, making them very high risk investments.

Liability
A claim on a company's assets.
 
Limit Expiry period
The number of trading days that you instruct Barclays Stockbrokers to monitor your limit order. This can be for the current trading day only or for a number of trading days up to a maximum of 30.
 
Limit Order
An order that specifies the minimum price at which you want to sell, or the maximum price at which you want to buy.
 
Limit Price
The maximum or minimum price at which you are wiling to buy or sell specified shares.
 
Limit Status
These are orders that have been accepted, but have not yet been dealt because the limit price set by you has not been achievable. Whilst orders are in this status on your 'Order Status/Cancel' page then you will see a 'Cancel' button next to the order, meaning you have the option to cancel the order before it is dealt.
 
Liquid market
A liquid market means there are plenty of shares in a particular company being bought and sold every day.
 
Liquidation
The process of ending a company's existence. A company is obliged or chooses to go into liquidation when it can no longer pay its debts.
 
Liquidity
The ability to buy or sell an asset quickly and in large volume without substantially affecting the asset's price.
 
Listed company
This is a Public Limited Company whose shares have been admitted to the London Stock Exchange's daily official list. It has to comply with the Exchange's listing regulations.
 
Listing rules
Rules book for listed companies which governs their behaviour - commonly known as the Yellow Book.
 
Long position
A long position is when someone buys (holds) a warrant or holds the underlying asset. Contrasts with 'Short position'.
 
Long dated
A Gilt with a life of 15 years or more.
 
LSE London Stock Exchange
Originated as New Jonathans Coffee House in 1773, then it joined the United Kingdom's regional exchanges to form the Stock Exchange of Great Britain. In 1995 the Dublin Stock Exchange left the alliance, then the Exchange became known as the London Stock Exchange.
 

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