They do this by investing in very safe and
very liquid securities, which themselves pay interest but also maintain constant values.
Successful funds manage so much money that their trading costs are quite high, unless they trade
very liquid securities or do it in small portions.
In Thicken My Wallet's example of Canadian Dividend ETFs, the underlying securities — dividend paying Canadian stocks — are
very liquid securities and the spread and bid / ask sizes reflect this.
Marketable security is
the very liquid securities that can convert into currency quickly at a reasonable price.
Marketable securities are
the very liquid securities that can convert into currency quickly at a reasonable price.
Not exact matches
My point was and is that the equity risk premium is bundled up closely with the nature of the
security itself (i.e., being a publicly traded, relatively
liquid investment asset called an equity, that has a
very specific bundle of rights and risks attached to it), which has
very different characteristics than the many other financial assets available in the economy (many of which have bundles of risk that are perceived as «riskier», and many of which are perceived as «less risky»).
Specifically, a sudden expansion of financial liquidity in the world's leading banking centers — whether an increase in British gold reserves in the 1820s or the massive transformation in the 1980s of illiquid mortgage loans into
very liquid mortgage
securities, or some other structural change in the financial markets — has been the catalyst behind every period of globalization.
Money market
securities are
very liquid and they have short maturities.
When you open a money market fund account, your money is invested for you in highly
liquid (easy to withdraw) and
very safe
securities, such as CDs (certificates of deposit), government - issued
securities, and short - term corporate obligations (called «commercial paper»).
My point was that covered bonds remained among the most
liquid markets around at the time (still not
very liquid), and far more
liquid than European mortgage backed
securities.
U.S. Treasury
securities are also
very liquid.
Liquid funds are a type of debt mutual funds which primarily invest in money market
securities for
very short period of time.
Be careful with Marketable
Securities — it's often not
very clear how
liquid / realizable they are, so if in doubt just exclude (particularly if they're listed in Non-Current Assets) or only include 50 % of the Balance Sheet (B / S) value.
Money market mutual funds are mutual funds that invest in
very short - term, highly
liquid securities which are considered safe havens such as government
securities or T - bills, certificates of deposit, and commercial paper.
Liquid funds are debt funds that invest in
very - short term instruments such as treasury bills, government
securities and call money up to maturity of 91 days.
On the other end of the spectrum, most listed
securities traded at major exchanges, such as stocks, funds, bonds and commodities are
very liquid, and can be sold instantaneously during regular market hours at fair market price.
If the individual
securities that compose the ETF have a high traded volume, and are therefore
very liquid, then the ETF that holds them will have the same degree of liquidity.
If a
security is
very liquid, it can be bought or sold easily.