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The ability to sell an asset quickly at a fair price is associated with?
Wiki User
∙ 14y ago
An orderly market with sufficient liquidity where numerous buyers and sellers can agree on a fair price. You will notice the words "liquidity" and that the plural is used for buyers and sellers. There has to be money available to close a sale and some competition between buyers and sellers to make the transaction somewhat "fair".
Wiki User
∙ 14y ago
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Explain why the bid-ask spread is a transaction cost?
The bid-ask spread is the difference between the bid price (the amount of money you get when you sell) and the ask price (the amount of money it costs to buy). Since the ask price is higher than the bid price, it costs you more money to buy the asset than you would receive should you be selling the same asset. This spread is the price (along with a commission) for making the trade.
What is the definition of liquidity?
AnswerLiquidity refers to how quickly and cheaply an asset can be converted into cash. Money (in the form of cash) is the most liquid asset. Assets that generally can only be sold after a long exhaustive search for a buyer are known as illiquid. 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. Antithesis of illiquidity.A large position in cash or in assets that are easily convertible to cash. High liquidity produces flexibility for a firm or an investor in a low-risk position, but it also tends to decrease profitability.
How can a bursting of an asset-price bubble in the stock market help trigger a financial crisis?
Because... economics.
What is market value?
The highest estimated price that a property will bring in a competitive and open market and under all conditions required for a fair sale.
What is a investment?
In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.
What is the meaning liquidity position?
The position of a company is an ability to convert an asset into cash quickly. The degree to which an asset or security can be bought or sold in the market without affecting its price.
How do you price an asset which is not currently traded on the market?
estimating the price with the season
What the mean of impairment of the assetsplease example?
impairment loss f an asset is the reduction in the income generating ability of that asset. it is calculated as: carrying value less recoverable amount. -carryibg value is the cost less accumulated depreciation -recoverable amount is the higher amount between the net selling price of an asset and its value in use.
What is basis risk?
Basis risk refers to the potential mismatch between the price movements of a hedging instrument and the underlying asset being hedged. It arises when there is a lack of perfect correlation between the two, leading to the risk that the hedging instrument may not fully offset the price movements of the underlying asset, resulting in financial losses. Basis risk is commonly encountered in derivative contracts and hedging strategies.
What if the traded asset price closes above the selected price before the expiry in binary options trading?
Your trade will considered "in the money" only when your underlying asset is at or above the strike price at expiry.
Are realized gains an asset or income account?
Realized gains are an income account. This is because it results from selling an asset at a higher price than the price for which it was obtained.
What is journal entries when owner withdraw asset on sales price?
general journal
What is the journal entries for disposal of fixed asset?
cr asset account for cost price dr accumulated depreciation for asset depreciation cr asset sale account dr/cr profit/loss on asset account
What is risk asset?
price,market risk, intrest rist...
What is a basic risk when entering into a derivative contract?
Basis Risk. This is the spot (cash) price of the underlying asset being hedged, less the price of the derivative contract used to hedge the asset.
When is a gain on disposal of an asset recorded?
A gain is recorded when the asset is sold for a price greater than the assets book value.
Is software considered a fixed asset?
if software is purchased and price is paid at once and used for many years then it is fixed asset but if you purchase a software and after that every year you need to renew the license of using that software then this lisence cost is current asset and price paid for purchasing software is fixed asset. For Example: software purchased for $1000 and lisence renew fee for every year is $100 then $1000 is fixed asset and $100 is current asset or revenue asset.
