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Liquid market |
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Liquid marketA market in which large quantities of shares (or commodities etc) are being bought and sold thereby making trading straightforward. This situation could also reduce the spread that is, the difference between the buying and selling price of shares.Liquid marketA market allowing the buying or selling of large quantities of an asset at any time and at low transactions costs.Liquid market Similar MatchesLiquidationLiquidationWhen a company's debts and other liabilities exceed its assets, it is technically insolvent. If the company's directors are unable to shore up its finance by, for example, raising new equity or debt finance, one of its creditors may appoint a receiver to the company. The receiver's job is to take over the running of the company, doing whatever he thinks best to help the appointing creditor get its money back. This may result in the company being sold as a going concern or, it may result in the company going into liquidation.When a company goes into liquidation, the receiver will sell its assets as best he can and distribute the cash proceeds in a strict order. Ordinary shareholders of the company come very low down the pecking order, behind trade creditors, but they may eventually recover some or all of their investment. The process of liquidation can last several years.For CGT purposes, a notification by the Stock Exchange that a company's shares have 'negligible value' means that shareholders of the company can establish losses and set them off against gains on other investments. LiquidatorLiquidatorAn official appointed to supervise the liquidation of a company. Liquid assetLiquid assetAsset that is easily and cheaply turned into cash-notably, cash itself and short-term securities. Liquidity ratioLiquidity ratioSee 'acid test'. Compulsory liquidationCompulsory liquidationLiquidation of a company brought about by a court order, usually as the result of a petition by an unpaid creditor. Further SuggestionsLiquidity diversificationliquid assets Liquid Liquidation value Self liquidating loan Liquidated Damages Liquidity trap Liquidity Fund Illiquid liquidity Liquidity Liquidity preference hypothesis Liquidity premium Liquid yield option note (LYON) Accounting liquidity Involuntary liquidation preference Liquidity crisis Liquidating dividend voluntary liquidation |
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