Liquidity premium and Liquidity ratio: Difference between pages

Revision as of 19:08, 3 February 2019

Financial ratio analysis.

Liquidity ratios are designed to measure the ability of a business to meet its financial obligations in the short term.

Examples include the Current ratio and the Quick ratio.

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+''Financial ratio analysis.''
-A term used to explain a difference between two types of financial securities, for example stocks, that have all the same qualities except liquidity.
+Liquidity ratios are designed to measure the ability of a business to meet its financial obligations in the short term.
+Examples include the Current ratio and the Quick ratio.
-.
-A premium that investors will demand when any given security can not be easily converted into cash, and converted at the fair market value.
-When the liquidity premium is high, then the asset is said to be illiquid, which will cause prices to fall, and interest rates to rise.
 == See also ==
-* [[Illiquid]]
+* [[Current ratio]]
 * [[Liquidity]]
-* [[Premium]]
+* [[Liquidity Coverage Ratio]]
+* [[Long-term solvency ratio]]
+* [[Quick ratio]]
-[[Category:Liquidity_management]]
+[[Category:Accounting,_tax_and_regulation]]
+[[Category:The_business_context]]