LEVERAGE

LEVERAGE

Using borrowed money to finance investments.

LIQUIDITY RISK

LIQUIDITY RISK

The risk arising due to inability to convert an asset quickly into cash at market value.

LIQUIDITY

LIQUIDITY

The ease with which an asset/security can be converted to cash without any change in its market value. High liquidity implies quick conversion with minimal loss while low liquidity can imply risk of delayed conversion and with higher loss  

LONG-TERM DEBT

LONG-TERM DEBT

Debt securities/loans having period of more than one year.