 Definition of Liquidity premium - Finance dictionary
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Liquidity premium ((See Chapter 19 of the Vernimmen))
Among factors used in determining risk, the criteria by which liquidity can be measured (size, free float, transaction volumes, bid-ask spread) are often statistically significant. In other words, liquidity often appears to be one of the factors determining the required return on a security. Liquidity premium due to free float, transaction volumes, bid-ask spread should be separated from the so-called ‘size premium’.
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Definitions of terms begining
with the same letter as "Liquidity premium"
:
L/C
LBO
LBU
LIBOR, London Interbank Offered Rate
LIFFE, Liffe
LIFO, Last in, first out
LMBO
LOI
LSP
LYON, Liquid Yield Option Notes
Laddering
Large cap
Last in, first out
Last trading day
Lead
Lead arranger
Lead bank
Lead manager
Lease
Leasing
Legal merger
Lender of last resort
Lending facility
Lessee
Lessor
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Letter of comfort
Letter of credit, L/C
Letter of intent, LOI
Level of control
Level of ownership
Leverage
Leverage effect
Leveraged build-up, LBU
Leveraged buy-out, LBO
Leveraged lease
Leveraged management buy-out
Leveraged recapitalisation
Leveraged share buyback
Levered beta
Levered cost of equity
Liabilities
Life of the bond
Life of the loan
Lifecycle of financing sources
Limited share partnerships, LSP
Liquidated damages
Liquidation
Liquidator
Liquidity - assets
Liquidity - balance sheet
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Liquidity - investments
Liquidity - liabilities
Liquidity - security
Liquidity discount
Liquidity event
Liquidity facility
Liquidity line
Liquidity preference theory
Liquidity premium
Liquidity ratios
Liquidity risk - company
Liquidity risk - market
Listed security
Listing
Loan cancellation
Loan to value
Lock up period
Lockbox system
Locking in future prices or rates
London Interbank Offered Rate
Long (position)
Lookback option
Loss Ratio
Loss rate
Ltv
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Liquidity premium ((See Chapter 19 of the Vernimmen))
Among factors used in determining risk, the criteria by which liquidity can be measured (size, free float, transaction volumes, bid-ask spread) are often statistically significant. In other words, liquidity often appears to be one of the factors determining the required return on a security. Liquidity premium due to free float, transaction volumes, bid-ask spread should be separated from the so-called ‘size premium’.
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