As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and
sell illiquid securities because of the difficulty of trading, and the problem of moving the market away from you with a large order.
As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and
sell illiquid securities because of the difficulty of trading, and the problem of moving the market away from you with a large order.
Not exact matches
Securities sold through private placements are restricted and not publicly traded, and are therefore
illiquid.
Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity
Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economi
Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we
sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve
illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economi
securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.
Privately placed, restricted (Rule 144A)
securities may be more difficult to
sell and value than publicly traded
securities, thus they may be potentially
illiquid.
That's an increasingly popular sort of closed - end fund will allows the managers to invest in
illiquid securities by restricting the ability of fund investors to
sell their shares.
The
Securities and Exchange Commission (SEC) says that it is complicated to accurately price them, and it can also be difficult to
sell them once you own them (they are
illiquid).
Investments in
securities that are difficult to purchase or
sell (
illiquid or thinly - traded
securities) may reduce returns if the Fund is unable to
sell the
securities at advantageous times or prices.
Private MIEs are
illiquid investments and are not listed on a stock exchangeStock exchange A market in which
securities are bought and
sold.
On Grantham's comments: my comments Saturday night are pertinent here for two reasons — anyone
selling illiquid CDO tranches, subordinated mortgage bonds, etc., immediately prior to the crisis would find two things: 1) the bids were non-existent or really poor, and 2) if the trade did take place, it would be at levels that reset the pricing grid for that area of the market a LOT lower, leaving the remaining
securities looking worse, and a diminution of GAAP equity.
Certain holders would be forced to
sell as institutional mandates would preclude them from holding
illiquid securities such as the participating interests in the FUR liquidating trust.
Liquidity risk exists when particular investments of the Fund would be difficult to purchase or
sell, possibly preventing the Fund from
selling such
illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations.
A manager under pressure to
sell a million dollars» worth of corporate bonds might well find that there's only a market for two - thirds of that amount, the remaining third could swiftly become
illiquid — that is, unmarketable —
securities.
These may include delayed - delivery and when - issued
securities transactions; swap agreements; buying and
selling futures contracts,
illiquid, and / or restricted
securities and repurchase agreements; and borrowing or lending money and / or portfolio
securities.