L

Lagging Indicator

Economic Indicator that changes directions after business conditions have turned around.

Leading Indicator

Economic indicator that changes directions in advance of general business conditions.

Life Annuity

A series of equal payments (typically monthly) made over a person's remaining lifetime.

Limitation Year

A consecutive 12-month period that is established for a qualified plan to ensure that Section 415 limitations are not exceeded.

Limit Order

An order placed with a broker to buy or sell at a price as good or better than the specified limit price.

Liquidity

The degree of ease and certainty of value with which a security can be converted into cash.

Lump Sum Distribution

A distribution from a qualified retirement plan of an employee's entire vested benefit within one taxable year. The distribution must be made on account of: the employee's death; attainment of age 59 1/2, separation of service; or disability. The employee must have been a participant in the plan for at least five years.