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Large Cap Funds - Mutual funds that primarily invest in stocks of large corporations such as those found in the S&P 500 like General Electric, Wal-Mart or Microsoft. Large-Cap funds typically invest in companies with a market capitalization greater than $5 billion.

Leading Economic Indicators - A group of economic activity reports that tend to foretell an upswing in general economic activity.

Level Load - A level load is usually associated with Class C shares of a mutual fund. It is a sales charge deducted from the net asset value of the shares held by an investor. For example, if you buy 1,000 shares of a mutual fund that has a 1% (annualized) level load, with a share price of $30, the total worth of your shares is $30,000. Assuming the fund's NAV remained the same, you'll be charged a 12b-1 fee of 1% of that amount to pay the load (sales charge), or $300. That 12b-1 fee used to pay the sales charge would bring the worth of your holdings in the fund to $29,700, assuming there were no income (for the sake of our illustration). In actual operation, the 12b-1 fee is deducted monthly, like other fund expenses, and 1/12th of the annual fee is assessed on the average value of your account during the month.

Leverage - Using borrowed funds in addition to invested equity in a financial undertaking.

Liability - A financial obligation, debt, or claim against a person or institution.

Life Insurance - An insurance policy that pays a death benefit to the beneficiaries when the insured dies.

Limited Partnership - A partnership formed by a general partner (who usually provides management expertise) and one or more limited partners (whose liability is limited to the amount invested) to engage in a financial venture.

Limited-Pay Life - A whole life policy where the premiums are paid for a limited period of time such as 20 years or until age 65 rather than for the life of the insured. At the end of the payment period, the policy becomes "paid-up" and guarantees death benefit protection in the face amount for the remainder of the insured's life without further premiums.

Limit Order - An order to a broker to buy a specified quantity of a security at or below a specified price, or to sell it at or above a specified price (called the limit price).

Listed Stock - Stock which is traded on a securities exchange.

Living Trust - A trust established during the lifetime of the person creating the trust, rather than under the person's will. Also known as an inter vivos trust.

Liquidity - The ability of an asset to be converted into cash quickly and without significant loss of value.

Load - A sales charge on the purchase of certain mutual funds.

Long-Term Care Insurance - An insurance policy that provides medical and nursing home benefits for the chronically ill or disabled.

Long-Term Growth of Principal - Increase in the value of an investment over a sustained period-typically 12 months or longer.