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Liquid |
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LiquidPossessing liquidity.Similar MatchesLiquidity diversificationLiquidity diversificationInvesting in a variety of maturities to reduce the price risk to which holding long bonds exposes the investor. LiquidationLiquidationWhen 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. Accounting liquidityAccounting liquidityThe ease and quickness with which assets can be converted to cash. Liquid assetLiquid assetAsset that is easily and cheaply turned into cash-notably, cash itself and short-term securities. Liquidity preference hypothesisLiquidity preference hypothesisThe argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates. Further SuggestionsLiquidity trapLiquidity Fund Liquid yield option note (LYON) Liquidation value Liquidity liquidator voluntary liquidation Self liquidating loan liquid market Liquid market compulsory liquidation Involuntary liquidation preference Liquidity crisis liquidity Illiquid Liquidated Damages Liquidating dividend liquid assets Liquidity premium liquidity ratio |
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