12
Oct

Leverage

This is an investment strategy of using borrowed capital or various financial instruments to increase the potential return of an investment. One way to create leverage is through Margins (see Margin Financing).

12
Oct

Lipper’s Ratings

The Lipper Leaders Rating System is a mutual fund rating system that uses investor-centered criteria, such as capital preservation, expense and consistent return. Funds are rated on a numeric scale of 5 to 1, with ‘5’ representing funds with the highest rating or Lipper Leaders, and ‘1’ representing the lowest rated funds.

12
Oct

Liquidity Ratio

Liquidity ratio = (Liquid Assets) / (Current Debts) It indicates how low you can continue to repay liabilities with existing liquid assets in the event of income loss. A low figure will be a cause of concern. Current debts represent that must be paid within a year. This means that you can cover < > % of your existing one-year

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