Meaning LIQUIDITY: A high level of trading activity, allowing buying and selling with minimum price disturbance. Also, a market characterized by the ability to buy and sell with relative ease. Antithesis of illiquidity
More terms such as Liquidity in Dictionary L.
- Definition Liquidity Risk:
- Examples The risk that arises from the difficulty of selling an asset in a timely manner. It can be thought of as the difference between the true value of the asset and the likely price, less commissions liquidity definition.
- Definition Listing Broker In The Context Of Equity, When A Stock Is Traded In Exchange It Is Said To Be Listed:
- Examples A licensed real estate broker who completes a listing of a property for sale liquidity explain.
- Definition Limitation On Merger, Consolidation, Or Sale:
- Examples A bond covenant that restricts in some way a firm's ability to merge or consolidate with another firm liquidity what is.
- Definition Leveraged Buyout (LBO) A Transaction Used To Take A Public Corporation Private That Is Financed Through Debt Such As Bank Loans And Bonds. Because Of The Large Amount Of Debt Relative To Equity In The New Corporation, The Bonds Are Typically Rated Below Investment-Grade, Properly Referred To As High-Yield Bonds Or Junk Bonds. Investors Can Participate In An L.B.O. Through Either The Purchase Of The Debt (I.E., Purchase Of The Bonds Or Participation In The Bank Loan) Or The Purchase Of Equity Through An L.B.O. Fund That Specializes In Such Investments.Leveraged CompanyA Company That Has Debt In Its Capital Structure.Leveraged EquityStock In A Firm That Relies On Financial Leverage. Holders Of Leveraged Equity Experience The Benefits And Costs Of Using Debt.Leveraged Investment CompanyAn Investment Company Or Mutual Fund Entitled To Borrow Capital For Its Operations. Also, An Investment Company That Issues Both Income Shares And Capital Shares.Leveraged LeaseA Lease Arrangement Under Which The Lessor Borrows A Large Proportion Of The Funds Needed To Purchase The Asset. The Lender Has A Lien On The Assets And A Pledge Of The Lease Payments To Secure The Borrowing.Leveraged Portfolio A Portfolio That Includes Risky Assets Purchased With Funds Borrowed.Leveraged RecapitalizationOften Used In Risk Arbitrage. A Public Company Takes On Significant Additional Debt With The Purpose Of Either Paying An Extraordinary Dividend Or Repurchasing Shares, Leaving The Public Shareholders With A Continuing Interest In A More Financially Leveraged Company. Popular Form Of Shark Repellent See: Stub.Leveraged Required ReturnThe Required Return On An Investment When The Investment Is Financed Partially By Debt.Leveraged StockStocks Financed With Credit, Such As That Purchased On A Margin Account.Liability A Financial Obligation, Or The Cash Outlay That Must Be Made At A Specific Time To Satisfy The Contractual Terms Of Such An Obligation.Liability Funding Strategies Investment Strategies That Select Assets So That Cash Flows Will Equal Or Exceed The Client'S Obligations.Liability InsuranceInsurance Guarding Against Damage Or Loss That The Policyholder, May Cause Another Person In The Form Of Bodily Injury Or Property Damage.Liability Swap An Interest Rate Swap Used To Alter The Cash Flow Characteristics Of An Institution'S Liabilities So As To Provide A Better Match With Its Assets.Lien:
- Examples A security interest in one or more assets that lenders hold in exchange for secured debt financing liquidity meaning.
- Definition Long-Term Loss:
- Examples A loss on the sale of a capital asset held less than 12 months that can be used to offset a capital gain liquidity abbreviation.
