Glossary

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LIBOR
London Interbank Offered Rate - the central bank lending rate in the UK which is a market standard reference used by many bond fund managers.
Life
The length of time between a bond's issuance and maturity, otherwise known as 'term to maturity' or 'term'.
Life Insurance Products
Products which guarantee that a sum of money will be paid out after a set term or upon death.
Limited redemption funds
Funds which restrict when you can cash in your investment, usually by having set redemption dates.
Listing Rules
Investment companies which are listed on the main market of the London Stock Exchange must comply with the Listing Rules. The Listing Rules is the rulebook produced by the Financial Services Authority (FSA) for all companies listed on this market. Most investment companies fall under the rules for closed-ended investment entities which re contained in Chapter 15. The Listing Rules sit within the FSA's Handbook alongside the Disclosure and Transparency Rules, which cover the disclosure of information to the market, and the Prospectus rules, which are relevant when an investment company produces a prospectus, for example on launch. Investment companies which are listed on the Alternative Investment market must comply with the AIM Rules. Companies which are listed on other exchanges must comply with the rules of that exchange. the rules of different exchanges vary widely.
Liquidation
The process of terminating a company by realising its assets, paying off creditors and holders of loan capital and distributing the remaining assets among shareholders, according to the order of priority.
Liquidity
The more 'liquid' an asset is, the easier it is to buy and sell.
Loan stock
A type of security issued by companies, also known as loan capital. This normally pays holders a fixed rate of interest and is repayable on or by a given date. See debenture stock.