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Liquidity
Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: * Market liquidity, the ease with which an asset can be sold * Accounting liquidity, the ability to meet cash obligations when due * Liquid capital, the amount of money that a firm holds * Liquidity risk Liquidity risk is a financial risk that for a certain period of time a given financial asset, security or commodity cannot be traded quickly enough in the market without impacting the market price. Types Market liquidity – An asset cannot be s ..., the risk that an asset will have impaired market liquidity See also * Liquid (other) * Liquidation (other) {{SIA ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Liquidity Risk
Liquidity risk is a financial risk that for a certain period of time a given financial asset, security or commodity cannot be traded quickly enough in the market without impacting the market price. Types Market liquidity – An asset cannot be sold due to lack of liquidity in the market – essentially a sub-set of market risk. This can be accounted for by: * Widening bid–offer spread * Making explicit liquidity reserves * Lengthening holding period for value at risk (VaR) calculations Funding liquidity – Risk that liabilities: * Cannot be met when they fall due * Can only be met at an uneconomic price * Can be name-specific or systemic Causes Liquidity risk arises from situations in which a party interested in trading an asset cannot do it because nobody in the market wants to trade for that asset. Liquidity risk becomes particularly important to parties who are about to hold or currently hold an asset, since it affects their ability to trade. Manifestation of liquidity r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Liquidity
In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold. In a liquid market, the trade-off is mild: one can sell quickly without having to accept a significantly lower price. In a relatively illiquid market, an asset must be discounted in order to sell quickly. Money, or cash, is the most liquid asset because it can be exchanged for goods and services instantly at face value. Overview A liquid asset has some or all of the following features: It can be sold rapidly, with minimal loss of value, anytime within market hours. The essential characteristic of a liquid market is that there are always ready and willing buyers and sellers. It is similar to, but distinct from, market depth, which relates to the trade-off between quantit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Accounting Liquidity
In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio In mathematics, a ratio shows how many times one number contains another. For example, if there are eight oranges and six lemons in a bowl of fruit, then the ratio of oranges to lemons is eight to six (that is, 8:6, which is equivalent to the ... or a percentage of current liability (accounting), liabilities. Liquidity is the ability to pay short-term obligations. Calculating liquidity For a corporation with a published balance sheet there are various Quick ratio, ratios used to calculate a measure of liquidity. These include the following: * The current ratio is the simplest measure and calculated by dividing the total current assets by the total current liabilities. A value of over 100% is normal in a non-banking corporation. However, some current assets are more difficult to sell at full value in a h ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Liquid (other)
Liquid is a phase of matter. Liquid or liquidity may also refer to: Business * Accounting liquidity, the ability of a debtor to pay their debts as and when they fall due * Liquid capital, the amount of money that a firm holds * Market liquidity, the ability to buy or sell a particular commodity quickly without causing a significant price fluctuation Music and dance * Liquid funk, a subgenre of drum and bass * Liquid dancing, a form of dance in which a dancer's gesticulations flow fluidly * Liquid (musician), a British dance act * Liquid (EP), an EP by Le1f & Boody * ''Liquid'' (Recoil album), a 2000 music album by Recoil * ''Liquid'', a 2009 music album by Urlaub in Polen * "Liquid", a song by Jars of Clay from Jars of Clay (album) * "Liquid" (The Rasmus song), a 1998 song by The Rasmus * "Liquid", a song by Brockhampton from ''Saturation III'' Science and technology * Liquid, a template engine from the e-commerce system Shopify * Liquid crystal, substances that exhibit a p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Liquid Capital
Liquid capital or fluid capital is the part of a firm's assets that it holds as money. It includes cash balances, bank deposits, and money market investments. Since these assets provide little or no income to the firm, it will ordinarily seek to invest them in activities that offer a higher return on investment, apply them to outstanding debts, or distribute them to the firm's owners. See also * Circulating capital * Fixed asset, the opposite of a liquid asset * Liquidity Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: * Market liquidity, the ease with which an asset can be sold * Accounting liquidity, the ability to meet cash obligations when due * Liqu ... References Capital (economics) Corporate development {{econ-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
