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0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

large cap: defined by as a company with a market capitalization of more than $8 billion. See also mid cap and small cap.

liability: a financial obligation, debt, claim or potential loss. Mutual fund liabilities include fund expenses and the cost of purchasing investments. The opposite of an asset.

Lipper, Inc.: a leading provider of data and analysis on mutual funds. Lipper publishes a number of indexes and averages for different categories of funds, as well as individual rankings of mutual funds in each category.

liquidity: the ability to buy or sell an asset quickly and in large volume without substantially affecting the asset’s price. Shares in large blue chip stocks tend to be very liquid because they are actively traded in large volumes; conversely, shares in small companies are less liquid because prices can move up or down sharply in response to large buy or sell orders.

load: a sales charge applied to the purchase of a mutual fund. Load funds are typically sold through brokers and financial professionals. See back-end load, front-end load and no-load.

lump sum: a single payment for an amount due, as opposed to a series of periodic payments. People leaving a company may receive a lump-sum distribution of their pension, or beneficiaries of life insurance policies may receive a death benefit in a lump sum.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.