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Financial glossary

L

Limit order

A limit order is an order to buy (sell) a given asset at a maximum (minimum) price. While enabling investors to control their executions, it limits their ability to fulfil orders. A limit order is opposed to a market order, where execution is achieved immediately in the market whatever the price.

Liquidity risk

The liquidity risk refers to the risk of selling (buying) a security at a price significantly lower (higher) than its intrinsic value due to a lack of market participants trading it.

Loan

A loan is a debt instrument under which the borrower owes the lenders (generally banks) a debt and is obliged to pay them periodic interest payments and to repay the principal by a given maturity date. Unlike bonds, loans are generally non-tradeable.

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management.

UCITS OFFER NO GUARANTEED RETURNS AND PAST PERFORMANCES DO NOT GUARANTEE FUTURE ONES