Investing Glossary

5 terms
  • Linear Income

    Linear income is earned in direct relation to the number of hours you work.
  • Liquidity

    Liquidity refers to the ease with which an asset can be purchased or sold. Marketable securities that are traded in high volume tend to be the most liquid, or easy to trade without creating wild fluctuations in price.
  • Liquidity Premium

    The liquidity premium represents the incrementally higher price an investor is willing to pay for a more liquid asset or security, all other factors held equal.
  • Loan-to-Cost Ratio (LTC)

    The Loan-to-Cost Ratio is the ratio of a loan used to help finance a project compared to the total cost.
  • Loan-to-Value Ratio (LTV)

    A risk assessment ratio that lenders perform when considering a real estate loan.