Loan default

Failure to pay back a debt as needed.

Liability

A legal duty or debt that a person or business is responsible for.

Liquidity

The capability of swiftly converting assets into cash.

Luxury goods

High-end or premium products or services.

Loan

A sum of money that must be returned with interest after being borrowed.

Long-term investment

An investment that was kept for a lengthy time—typically more than a year.

Loss

A decline in the value of an asset or a financial loss.

Leveraged buyout

The acquisition of a business using a significant quantity of borrowed funds.

Line of credit

A pre-approved credit line that may be utilized to borrow money as required.

Leverage

To boost the possible return on an investment, borrowed money or financial instruments are employed.

Liquidation

The selling of assets to settle debts or shut down a firm.

Long position

A financial situation when an investor believes the value of an asset will increase.

Low-cost leader

A business tactic that entails providing products or services at a cheaper cost than rivals.

Leading indicator

An economic activity forecasting financial indicator.

Lifestyle branding

A marketing tactic when a company or product is positioned as a component of a certain lifestyle.