The word lo can be a direct object pronoun (æhim,Æ æit,Æ æyouÆ), but it can also function as a neuter article to describe an abstract idea. In English, this structure is usually expressed by æthe...thingÆ. Lo más importante es que ustedes lleguen a tiempo (æThe most important thing is that you all arrive on timeÆ). Lo malo es que Thomas no puede encontrar una casa amueblada (æThe bad thing is that Thomas can't find a furnished houseÆ).

Lo can also refer to a whole situation: déjelo (æforget the whole thingÆ). No lo comprendo (æI don't understand anythingÆ).