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Liquidity Provision Process
Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: * Market liquidity, the ease with which an asset can be sold * Accounting liquidity, the ability to meet cash obligations when due * Funding liquidity, the availability of credit to finance the purchase of financial asset * Liquid capital, the amount of money that a firm holds * Liquidity risk, the risk that an asset will have impaired market liquidity See also *Liquid (other) Liquid is a phase of matter. Liquid or liquidity may also refer to: Business * Accounting liquidity, the ability of a debtor to pay their debts as and when they fall due * Liquid capital, the amount of money that a firm holds * Market liquidity ... * Liquidation (other) {{SIA ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Liquidity
In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold. In a liquid market, the trade-off is mild: one can sell quickly without having to accept a significantly lower price. In a relatively illiquid market, an asset must be discounted in order to sell quickly. A liquid asset is an asset which can be converted into cash within a relatively short period of time, or cash itself, which can be considered the most liquid asset because it can be exchanged for goods and services instantly at face value. Overview A liquid asset has some or all of the following features: it can be sold rapidly, with minimal loss of value, anytime within market hours. The essential characteristic of a liquid market is that there are always ready and wil ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Accounting Liquidity
In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities. Liquidity is the ability to pay short-term obligations. Calculating liquidity For a corporation with a published balance sheet there are various ratios used to calculate a measure of liquidity. These include the following: * The current ratio is the simplest measure and calculated by dividing the total current assets by the total current liabilities. A value of over 100% is normal in a non-banking corporation. However, some current assets are more difficult to sell at full value in a hurry. * The quick ratio is calculated by deducting inventories and prepayments from current assets and then dividing by current liabilities, giving a measure of the ability to meet current liabilities from assets that can be readily sold. A better way for a trading corporation to meet l ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Funding Liquidity
Funding liquidity is the availability of credit to finance the purchase of financial assets. The International Monetary Fund (IMF) defines funding liquidity as "the ability of a solvent institution to make agreed-upon payments in a timely fashion". Funding liquidity is essentially a binary concept: a bank can either settle obligations or it cannot. Sources of funding Liquidity is the key source of revenue for banks, and can be provided by either depositors or markets. Examples of fund sources include selling of assets and securities, syndicated loans, secondary market mortgages, capital markets, inter-bank market, and capital by borrowing from a central bank. The degree of correlation between funding liquidity and market liquidity acts as an important parameter for evaluating the development of a financial market and reflects the activity of the market. Funding liquidity is related to the degree of freedom and economic efficiency in relation to the borrowing of financial assets, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Liquid Capital
Liquid capital or fluid capital is the part of a firm's assets that it holds as money. It includes cash balances, bank deposits, and money market investments. See also * Circulating capital * High quality liquid assets * Fixed asset * Liquidity Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: * Market liquidity In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quic ... References Capital management Corporate development {{finance-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Liquidity Risk
Liquidity risk is a financial risk that for a certain period of time a given financial asset, security or commodity cannot be traded quickly enough in the market without impacting the market price. Types Market liquidity – An asset cannot be sold due to lack of liquidity in the market – essentially a sub-set of market risk. This can be accounted for by: * Widening bid–ask spread * Making explicit liquidity reserves * Lengthening holding period for value at risk (VaR) calculations Funding liquidity – Risk that liabilities: * Cannot be met when they fall due * Can only be met at an uneconomic price * Can be name-specific or systemic Causes Liquidity risk arises from situations in which a party interested in trading an asset cannot do it because nobody in the market wants to trade for that asset. Liquidity risk becomes particularly important to parties who are about to hold or currently hold an asset, since it affects their ability to trade. Manifestation of liquidity r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Liquid (other)
Liquid is a phase of matter. Liquid or liquidity may also refer to: Business * Accounting liquidity, the ability of a debtor to pay their debts as and when they fall due * Liquid capital, the amount of money that a firm holds * Market liquidity, the ability to buy or sell a particular commodity quickly without causing a significant price fluctuation Music and dance * Liquid funk, a subgenre of drum and bass * Liquid dancing, a form of dance in which a dancer's gesticulations flow fluidly * Liquid (musician), a British dance act * Liquid (EP), an EP by Le1f & Boody * ''Liquid'' (Recoil album), a 2000 music album by Recoil * ''Liquid'', a 2009 music album by Urlaub in Polen * "Liquid", a song by Jars of Clay from their eponymous album * "Liquid" (The Rasmus song), a 1998 song by The Rasmus * "Liquid", a song by Brockhampton from ''Saturation III'' * "Liquid", a song by Joe Morris from '' Singularity'' Science and technology * Liquid, a template engine from the e-commerce ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
