Laissez-faire
An economic doctrine that states that government interference and intervention in the marketplace should be at a minimum. It favors the concept of a “free marketplace” where there are no government regulations. Economist Adam Smith advocated the idea, that a free marketplace would find a natural equilibrium and would be dictated by the forces of the “invisible hand” of supply and demand which would keep the marketplace in order. Although under laissez-faire economics many nations reached a high level of industrialization, monopolies and depressions led to the abandonment of pure laissez-faire for the protection of government intervention. (Laissez-faire: “allowed to do” in French)
http://www.truveo.com/2005-The-American-Ruling-Class-LaissezFaire/id/2219158368
Launder
The illegal practice of making illegally acquired cash look as if it were acquired legally.
Lease
A contract granting the use of real estate, equipment, or other assets for a specified time in exchange for payment which is usually in the form of rent.
Liabilities
The claims against a corporation or another entity, including accounts payable, wages, salaries, dividends, taxes and obligations such as bonds, debentures and bank loans.
Lien
A creditor’s claim against property if the credit is not paid on time. A lien is removed as soon as a debt is paid, and can be issued by a court.
Liquidation
The process of converting stock or other assets into cash.
Liquidity
The ability of a financial assets to be converted to cash without creating a substantial change in price or value.
Loose Credit
A policy enacted by the Federal Reserve Board that makes loans less expensive and therefore widely available in the economy. It does this by reducing interest rates by buying Treasury securities and gives banks more funds they need to satisfy loan demand. Called Easy Money it is used when the economy lags, and I the opposite of tight money which makes loans more expensive and difficult to acquire during an inflation period.
Lump Sum
A large payment of money received at one time instead of various periodic payments.