0
What else can I help you with?
What is an advantage of a short term loan?
less risk for the lender (liquidity) -> less collateral and information required.
The purpose of secondary trading is to?
Provide liquidity and competiton between investments.
Is high liquidity beneficial for investments?
Yes, high liquidity is beneficial for investments because it allows for easier buying and selling of assets, which can help investors quickly react to market changes and access their funds when needed.
What are the Merits and demerits of promissory notes?
higher liquidity, constant assured return on your investment lower returns compared to other investments
Are investments that are not easily converted into cash considered liquid?
No, "liquid" assets and investments are those MORE EASILY converted into cash. The term "liquidity" refers to the relative ease and speed with which investments can be "liquidated" (turned into cash or its equivalent), either to remain cash or be placed into another investment.
What is an advantage of a short term loan?
less risk for the lender (liquidity) -> less collateral and information required.
Why do you mean by less liquidity?
Less liquidity indicates the business has solid capital investments that are not easily converted to cash. These investments can be buildings, land, or equipment that typically take time to sell.
The purpose of secondary trading is to?
Provide liquidity and competiton between investments.
Is high liquidity beneficial for investments?
Yes, high liquidity is beneficial for investments because it allows for easier buying and selling of assets, which can help investors quickly react to market changes and access their funds when needed.
The relationship between current assets and current liabilities is important in evaluating a company's?
Liquidity
Are real estate time-shares good investments?
real estate time shares have historically been bad investments due to their lack of liquidity
What is an disadvantage of liquidity?
A disadvantage of liquidity is that having too much cash or assets that can be easily converted into cash may lead to missed opportunities for higher returns on investments. Additionally, excessive liquidity can reduce the overall profitability of a company by lowering the potential returns on idle cash.
What is measured by the liquidity of an investment?
The ease of converting the investment into cash is measured by liquidity. For example, bank accounts can be convered into cash immediately by writing a cheque. However Gold can not be converted into cash with such an ease, as you have to approach a buyer of gold or you should approach a bullion dealer.
What are the Merits and demerits of promissory notes?
higher liquidity, constant assured return on your investment lower returns compared to other investments
Are investments that are not easily converted into cash considered liquid?
No, "liquid" assets and investments are those MORE EASILY converted into cash. The term "liquidity" refers to the relative ease and speed with which investments can be "liquidated" (turned into cash or its equivalent), either to remain cash or be placed into another investment.
Does leverage and liquidity rise and fall together?
Leverage and liquidity do not necessarily rise and fall together. Leverage indicates the level of debt used to finance investments, while liquidity refers to how easily an asset can be bought or sold without affecting its price. While leverage might impact liquidity in certain situations, they are not directly correlated and can move independently depending on market conditions.
How do securities markets provide liquidity?
Market liquidity means that an asset can be sold without any great movement in its price with a minimum loss. Today's most liquid assets is money (cash). A market can keep its liquidity by selling its assets for cash, by taking loans from banks, by selling properties or by cutting back on investments.
