L

Leverage / gearing

Investing should be just that: you put your money into an asset on the hope it will pay a return. But in the convoluted finance world, investing can also involve borrowing , known as leverage ...

Liquidity

This is far simpler than it sounds: it's the ease with which you can buy or sell an investment or asset. Cash is about as liquid as you can get. The house or flat you own (or don't own) is about as illiquid as you can get, taking months to sell ...