Glossary

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Large cap: A company with a sizeable market capitalisation (with reference to the stock market on which its shares are traded).

Leverage: An effect stemming from financing investments via borrowing. The purpose behind using leverage is to boost potential returns on the fund's investments. On the other hand, leverage makes returns more volatile.

Liquidate a position: Sale of a position in a security/group of securities.

Liquidities (create): To recuperate cash invested in securities in the form of cash.

Liquidity: Trading potential for a company's shares or for an asset class. Liquidity (and, by extension, illiquidity) can also be viewed as the balance between buying and selling interest in these securities.

Listing: Admission of a security to exchange trading.