While most investors value liquidity (the ability to buy or
sell an asset easily, with low transaction costs), it does come with a price.
Not exact matches
Broadly speaking, liquidity measures how
easily traders and investors can buy and
sell an
asset in the market without seeing big price dislocations.
For Marks is asking investors a very basic, fundamental, and not -
easily - answered question: if you don't know what you can
sell a given
asset for, do you really know what it is worth?
If you want to mitigate risk, place investment decisions like buying and
selling stock in the hands of a professional, diversify
easily and inexpensively, and take advantage of using more than one style in a single
asset, mutual funds may be for you.
You can buy shares of stock in thousands of companies across the world, and this stock can be
sold quickly and
easily for cash, making it a very liquid
asset.
The best
asset we were suppose to get back from that trade is
easily the worst of the three (LaVine), the best was totally dumb luck (THEY KNEW NOTHING ABOUT LAURI, JUST BPA) and I'm still not
sold on Dunn as the «PG of the Future».
This means that companies with larger amounts of current
assets will more
easily be able to pay off current liabilities when they become due without having to
sell off long - term, revenue generating
assets.
However, DFA faces an ongoing criticism: since its funds are
sold exclusively through 1,900 rigorously screened and trained financial advisors, they are not
easily accessible to individual investors, especially those with a small amount of investable
assets, not willing to pay advisory fees or already having an unaffiliated advisor.
An equipment trust certificate is backed by an
asset that is
easily transported or
sold.
There would be capital gains tax to be paid if the
assets are
sold, but a long - term investment of, say, 20 years with no tax on annual gains of 3 per cent after inflation would
easily cover tax due at no more than about 22 per cent of realized gains based on 50 per cent inclusion rate, as present tax rules allow.
Assets that can be easily bought or sold are known as liquid a
Assets that can be
easily bought or
sold are known as liquid
assetsassets.
Infrastructure
assets are less «liquid» than some other investments, which means they can not be as
easily sold and converted to cash.
In terms of property, bad
assets continue to be restructured /
sold off (or they've migrated into public hands), while good
assets & projects are being re-financed far more
easily now.
Trouble is, if you fail to execute this strategy at just the right time, or if you buy bonds just when the bond market is retreating, you could
easily end on the losing side of both
asset classes,
selling at a market low and buying back in at a market high.
Since you are buying and
selling assets, now is a perfect time to also consolidate accounts or roll over a previous employer's 401k to a rollover IRA so that you have easier access to all your investments and can more
easily track your progress in the future.
Capital
assets, including real estate and production equipment, often have value, but are not
easily sold when cash is required.
Selling or liquidating an
asset allows you to pay off your debts quickly and
easily.
Assets can sometimes not be
easily sold.
Ken, Virtually everybody who needs legal services for real estate transactions (because you either own or are able to buy an
asset worth hundreds of thousands of dollars), wills (because you have
assets), powers of attorney (usually ditto), estates (ditto), notarizations, incorporations and small business transactions (because you have the wherewithal to be starting, buying or
selling a business) can
easily afford the very modest fees charged for those services (fees that are less than and often far, far less than, as applicable, the government charges, the realtor charges, the accountant's charges, the moving van company, the new appliances, etc. etc. etc.).
Consider that for most family business owners, the business is probably the most valuable, and the most illiquid
asset in the marriage, meaning that it can not be
easily sold or exchanged for cash without a substantial loss in value.
Keep in mind that this isn't the total of all your
assets — your house might be worth $ 600,000 but you don't really want your family to have to
sell it, since that sort of defeats the purpose of providing them with financial protection — but liquid
assets that can be
easily used.
Only
assets that can be
easily sold in the event of liquidation or borrowed against, and receivables for which payment can be reasonably anticipated, are included in admitted
assets.
Not all financial
assets are
easily sold or make sense to
sell at the time of divorce, which can add another wrinkle in the property division.