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Letter of Intent: Agreement by the investor to buy a minimum dollar value of shares within a 13-month period to qualify the investor for a reduced sales charge on these purchases.

Liabilities: Outstanding claims against a corporation such as salaries and taxes.

Life Expectancy: The statistical age to which an average person is expected to live, as calculated by IRS tables.

Life Expectancy Method: The formula used to calculate RMDs under the 1987/1988 proposed regulations. Three methods are allowed by the IRS — recalculation, term certain, and adjusted age. Prior to beginning RMDs, the account owner chooses one method, which applies to all future distributions.

Limited Partnership: Form of business organization made up of a general partner who manages the day-to-day operation, and limited partners who supply the money to run the business and receive profits.

Lipper Inc.: Publishers of performance and other statistical data pertaining to all subscriber mutual funds. Issues reports to subscribe funds on a regular basis. It is the leading provider of such services in the mutual fund industry.

Lipper Mutual Fund Industry Average: Performance of all mutual funds averaged and ranked on a quarterly and annual basis by Lipper Inc.

Lipper Performance Figures: Lipper Inc., among other services, ranks particular funds against other funds with the same investment objective, for example, the XYZ fund ranked 5 out of 30 growth and income funds.

Liquid Asset: Cash or items easily converted into cash like money market fund shares, U.S. Treasury bills, and bank deposits.

Liquidate: Process of converting mutual fund shares into cash. Also known as Redemption.

Liquidity: Ability of an individual or company to convert assets into cash or cash equivalents without significant loss.

Liquidity Risk: When there is no active trading market for specific types of securities, it can become more difficult to sell the securities at or near their perceived value. In such a market, the value of such securities and a fund's share price may fall dramatically. Investments in foreign securities tend to have greater exposure to liquidity risk than domestic securities.

Listed Stock: Stocks that have been accepted for trading on a securities exchange

Load: Fee for the purchase, or sometimes at redemption, of shares of a mutual fund. Also known as Sales Charge.

Load Fund: Mutual fund that has a front- or back-end sales charge.

Long: "Going Long" or "Long Position" describes the purchase of a commodity or security.