All Finance terms definitions starting with the alphabet L

What is Law of supply ?

Definition of Law of supply Law of supply is essential microeconomics law. This law expresses that all other factors keeping constant. when the prices of any good and services increase the seller increase its supply of that good in the market and vice versa. This law defines that higher price of goods leads to higher quantity […]

What is Law of demand ?

Definition of Law of demand Law of demand is essential microeconomics law. This law expresses that when the cost of products and service increase. the demand for that specific good and services declines and vice versa. while keeping other factors constant (ceteris paribus). This law defines that a higher price leads to a lower quantity demanded. […]

What is Loan ?

Definition of Loan Loan is a simple concept which means lending money from another individual, bank or organization. It is kind of debt on which interest is applicable, it has a written evidence note and usually paid back on set defined time, either lump sum or in installments. Brief Explanation of Loan Debt loan has […]

What is Liability ?

Definition of Liability Liability in general means something one is legally responsible of. In business, liability can be defined as future outflow of money or economic benefits that the company is liable to make to the other entity as a result of past event or transaction. It is the business obligation or debt that arises during […]

What is Liquidity ?

Definition of Liquidity Liquidity is the availability to quickly convert or transform assets and securities into cash. For liquid assets, there has to be a permanent active market i.e. there should be available active buyers and sellers. Some assets are more liquid than others. Brief Explanation of Liquidity Example of liquid assets include cash in hand, investments […]

What is Loan application ?

Definition of Loan application Loan application as the name suggests is an application for loan. When an individual wants to apply for loan either in bank or any other financial institution he is required to write an application apart from a loan form. The loan can either be personal or business. In both cases application, might […]

What is Load fund ?

Definition of Load fund Load fund are those which include the charges of commission during the time of sale or purchase. This commission is kind of agent or broker fee who offer their expertise for intelligent investment and appropriate time to sell them. This fee is normally in percentage form or amount of funds available to […]

What is Liquidity Ratio?

Definition Liquidity ratio is the class of financial metrics which is used for the determination of a company’s ability to repay its short term obligations. Usually, the higher value of this ratio indicates that a company has a large margin of safety in order to cover short term debts. Explanation of Liquidity Ratio Commonly, liquidity […]