Dictionary
- Linear Regression Trendline
- Linear regression is used to explain and/or predict. The general form is: Y = a + bX + u Where Y is the independent variable, X is the dependent variable, a is the intercept, b is the slope, and u is the regression residual .
- Liquidation
- Any transaction that offsets or closes out a long or short position.
- Liquidation Value
- Net amount that could be realized by selling the assets of a firm after paying the debt.
- Liquidity
- A high level of trading activity, allowing buying and selling with minimum price disturbance. Also, a market characterized by the ability to buy and sell with relative ease.
- Liquidity Preference Theory
- The theory that the forward rate exceeds expected future interest rates.