Market capitalisation (sometimes referred to as 'market cap') is the total value of a company, calculated by multiplying the number of shares in issue by the current price of the shares. Companies are often referred to as being 'mega-cap', 'large-cap', 'mid-cap' and 'small-cap', reflecting their relative total value – mega-cap and large-cap being the largest companies and small-cap being the smallest (though it's important to remember that small-cap can still mean companies with values in the hundreds of millions or even low billions). Different markets attach different values when seeking to define the differences between these categorisations.
A launch date is the date on which a fund's offer period closes.
The launch price is the price at which a fund was originally launched.
Lipper is a commercial organisation (currently owned by Reuters) which provides independent performance data on a wide range of collective investment schemes including unit trusts and OEICs.
Liquidity refers to the ease of dealing in an equity or bond and turning it into cash. It is the ability to convert an asset to cash quickly. There is no specific liquidity formula; however, liquidity is often calculated by using liquidity ratios.
Listing particulars refer to details a company - including a collective investment scheme such as an investment trust - is obliged to publish about itself together with any securities it issues before it obtains a listing on a recognised stock exchange. Listing particulars are usually published in the form of a prospectus prior to flotation.
'Long position (or long exposure)'
A 'long position' is the purchase of a security, commodity or financial instrument (for example, shares or bonds) in the belief that its price will rise, with the aim of making a gain from the increase. Conversely, a 'short position' is when an investor borrows a share or other financial instrument (for a fee) and then sells it. The investor does this in the expectation that the price will fall and the share or position can be bought back at a lower price later, thus making a profit. The investor then returns the borrowed shares.
