Common investment terminology used in Australia, categorised alphabetically
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
Joint venture
An agreement in which two or more parties jointly explore, finance, operate or invest in a venture.
Junk bonds
Low-quality, high risk fixed interest securities.


Leverage
The process of increasing the funds available for investment by borrowing.
Limit order
An instruction placing a limit on the highest price to be paid or the lowest price at which to sell.
Limited liability (Ltd)
When an investor's liability is limited to the fully paid value of the shares held.
Liquid market
A market in which a security can be quickly and easily converted into cash.
Listed security
A security that is traded on the Australian Stock Exchange.
Long (position)
Owning a security. The opposite of short (position).


Margin
Borrowing by a client from their broker in part payment for the purchase of securities. In futures trading, a good faith deposit required to be lodged when entering a contract.
Mark to market
Settling margin variations as a result of price movement.
Market capitalisation
The value of a company, found by multiplying the number of shares outstanding by the market price.
Market order
An instruction to buy or sell immediately at the best price currently available.
Maturity
The date on which a fixed interest security is due to be repaid.
Merger
The joining of two or more businesses into a single economic entity.
Minority interest
The value of profits and equity that is attributable to the holders of interests in subsidiaries that are not wholly owned.
Money market
A market in which financial institutions trade shortterm debt securities such as treasury notes and bank accepted bills.
Mortgage
A pledge over an asset to secure a loan.