L
Large Cap
Companies with a high market capitalisation ―generally between $10 billion and $200 billion.
Legal Personal Representative
The person who is legally authorized to manage your affairs when you die.
Liabilities
Legal debts, or payment obligations, that arise during the course of doing business. These debts must be paid by your fund at some future time. They are usually recorded in a creditor account and are taken into consideration when calculating fund value, profits and member entitlements.
Liquidation
The process of winding up a company by selling its assets, settling its debts, and distributing any remaining assets to shareholders. If a liquidated company is unable to pay its debts on liquidation, it is declared insolvent.
Liquidity
The extent to which an investment can be quickly converted to cash.
Listed Company
A company with shares that are traded on a stock exchange and able to be bought and sold by members of the public.
Listed Funds
Funds that invest in listed shares, property, etc. Shares in listed funds can be bought and sold on the stock market and their price and investment returns fluctuate like other shares over the short term.
Listed Property
An investment entity that owns real estate assets (land, buildings, etc) and lists on the stock market such that investors can buy and sell holdings in the entity just like common shares.
Listing Rules
Rules imposed by a public securities exchange (such as the Australian Securities Exchange) that companies must comply with to remain eligible to trade shares on the exchange.
Loan Account
An account that tracks loans advanced to your fund by other entities or individuals. Similar to a bank account but with a negative balance. Note that strict laws apply to borrowing by superannuation funds. Check with your accountant before entering into any loan agreement.
LodgeIT
A Mclowd partner enabling the automatic preparation and electronic lodgement of tax and BAS returns. By purchasing the Paid Extra styled ”Online Lodgement” (see https://app.mclowd.com/paid-extras) you can optionally export an XML file (”Tax Data Extract”) containing all data needed to prepare your tax return and import this into LodgeIT to complete tax return preparation and lodgement.
Long position
A position taken when buying an asset to hold over time, with the expectation that it will increase in value.
Lump Sum
A cash benefit or benefit paid in several parts in lieu of a gradual draw-down of retirement income or annuity.
about the author: Lorraine Cobcroft
With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.