Liquid and Liquidity: Difference between pages

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1. ''Assets.''
1.  


In relation to an asset, able to be turned into cash quickly and without significant loss compared with current market value.
An asset's ability to be turned into cash quickly without significant loss compared with current market value.




2. ''Markets.''
2.  


In relation to a market, a situation in which large quantities of the asset traded in the market can be bought or sold at any time, with low transaction costs, and without affecting the market price.
An entity’s ability to pay its obligations when they fall due, especially in the short term.
 
 
3.
 
An entity's ability to source additional funds to meet its obligations.
 
 
4.
 
A financial ratio designed to measure an entity's ability to meet its obligations when they fall due.
For example, the ''current ratio'' or the ''quick ratio''.




== See also ==
== See also ==
* [[Cash and cash equivalents]]
* [[Authorisation]]
* [[Authority limits]]
* [[Cash forecasting]]
* [[Cash forecasting]]
* [[Deep market]]
* [[Cash pool]]
* [[Current ratio]]
* [[Illiquid]]
* [[Illiquid]]
* [[Liquid market]]
* [[Liquidate]]
* [[Liquidation]]
* [[Liquidation]]
* [[Liquidity]]
* [[Liquidity buffer]]
* [[Liquidity Coverage Ratio]]
* [[Liquidity preference]]
* [[Liquidity management]]
* [[Liquidity management]]
* [[Liquidity premium]]
* [[Liquidity premium]]
* [[Liquidity risk]]
* [[Liquidity risk]]
* [[Money management]]
* [[Quick ratio]]
* [[Solvency]]
* [[Solvency]]
* [[Stress]]
* [[CertICM]]
* [[Survival period]]
 
 
=== Other resources ===
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]


[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Liquidity_management]]

Revision as of 09:42, 29 November 2014

1.

An asset's ability to be turned into cash quickly without significant loss compared with current market value.


2.

An entity’s ability to pay its obligations when they fall due, especially in the short term.


3.

An entity's ability to source additional funds to meet its obligations.


4.

A financial ratio designed to measure an entity's ability to meet its obligations when they fall due.

For example, the current ratio or the quick ratio.


See also