The acid-test ratio, also known as the quick ratio, is a liquidity metric that assesses a company's ability to cover its short-term liabilities with its most liquid assets.
A broker-dealer is an individual or firm that buys and sells securities for its clients and its own account. Broker-dealers play a crucial role in the securities industry, providing liquidity and facilitating the trading of securities.
Short-term, highly liquid investments that are capable of being converted into known amounts of cash without notice, typically maturing within three months when acquired.
Cash management involves the planning, monitoring, and execution of a firm's policy regarding liquidity to ensure adequate availability of cash for operational needs, investment opportunities, and unforeseen expenses.
The amount of cash or equivalent instruments held at any point in time. A commodity or securities trader or an investment company needs to monitor its cash position carefully to maintain adequate liquidity.
Cash-flow accounting is an accounting method that focuses on the inflows and outflows of cash within a business, providing a clear picture of the company's liquidity.
Circulating assets, also known as current assets, are the assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.
The term 'collection' has various meanings within the financial and banking sectors, including the presentation of negotiable instruments, debt collection, financial conversion of accounts receivable to cash, and a set of collectibles.
Cross-sectional analysis involves comparing the accounting ratios of one company with those of its peers to assess profitability, liquidity, and capital structure. This method helps in determining a company's performance relative to its competitors.
A current asset refers to cash, accounts receivable, inventory, and other assets that are likely to be converted into cash, sold, exchanged, or expensed in the normal course of business, usually within a year.
Current assets, also known as circulating assets, circulating capital, or floating assets, are the assets of an organization that form part of the working capital and are constantly changing their form as they circulate from cash to goods and back to cash again.
Current Cash Equivalent (CCE) is a financial concept that refers to the amount of cash or cash-equivalent assets that a company holds, which can be quickly converted into cash without significant loss of value.
The ratio of a business's current assets to its current liabilities, expressed as x:1. This metric helps gauge the liquidity of a company, indicating its ability to meet short-term obligations.
In the UK, the discount market refers to a segment of the money market where banks, discount houses, and bill brokers engage in the discounting of bills and short-term financial instruments to facilitate liquidity and profitability.
Detailed examination of eligible paper, including Treasury bills, short-dated gilts, acceptances by banks, and their role in maintaining liquidity and influencing financial institutions' portfolios.
A currency deposited in a bank outside its country of issue, providing a cheap and convenient form of liquidity for international trade and investment.
An in-depth analysis of financial statements to assess a business's performance and position, using ratios to evaluate profitability, solvency, working capital management, liquidity, and capital structure.
A first-tier market is the main trading platform for the equity of large, established companies, characterized by high levels of regulation and supervision. It represents the primary, most liquid segment of the market, ensuring efficient and transparent transactions.
Floating Assets, also known as Current Assets, are the assets in a company's possession that is expected to be converted into cash within a year.
The Gilt Repo Market is a platform for the sale and repurchase of gilt-edged securities, established by the Bank of England in 1996. This market plays a crucial role in the implementation of monetary policy by influencing the liquidity within the banking system.
A bear market where investors who sell incur substantial losses, while potential investors prefer to remain liquid until market conditions improve. Like a graveyard, those who are in cannot get out, and those who are out have no desire to get in.
Historically, coin made of precious metal. Nowadays it may refer to any readily available money, whether paper or metal.
Denoting the position of a company lacking sufficient cash, or assets that can be quickly converted into cash, to meet the demands of creditors.
Liquid assets are assets that can be easily converted into cash without significantly affecting their value. They are essential for maintaining the liquidity of individuals and corporations.
Liquid assets are those holdings that can be quickly and easily converted into cash with minimal capital loss, playing a crucial role in assessing a company's liquidity and solvency.
A liquid instrument refers to a negotiable instrument that the purchaser can sell or trade before its maturity date, offering flexibility and quick access to funds.
A critical measure used to assess a company's short-term liquidity, focusing on the ability to cover current liabilities with liquid assets.
Liquidity refers to the extent to which an organization's assets are liquid, enabling it to pay its debts when they fall due and to move into new investment opportunities.
The Liquidity Index measures a company's liquidity by calculating the number of days it would take for current assets to be converted into cash, providing insights into financial stability and operational efficiency.
In the USA, the section in the annual report to stockholders and in Form 10-K that is required by the Securities and Exchange Commission. The purpose of the MD&A is to assist investors to understand the impact of changes in accounting and business activity that have affected comparisons with the results of previous years.
A market maker is a dealer in securities introducing liquidity to the market by buying and selling as a principal and setting prices for transactions.
Marketability refers to the speed and ease with which a particular product or investment may be bought and sold. While it is often used interchangeably with liquidity, liquidity specifically implies the preservation of value when a security is bought or sold.
Marketable securities are assets on a corporation's balance sheet that can be readily converted into cash, reflecting their liquidity. They include government securities, banker's acceptances, and commercial paper.
Money supply refers to the total stock of money available in an economy at a given point in time. It includes various forms of liquidity to measure how easily people can access financial assets.
Near money, also known as quasi money, refers to assets that are not as liquid as cash but can be quickly converted into cash and used to settle debts. Examples include bills of exchange, savings accounts, and treasury bills.
An essential liquidity measure that determines if a business can meet its short-term obligations with its most liquid assets.
A publicly traded corporation, also known as a publicly held corporation, is a company that has sold a portion of itself to the public via the issuance of stock on a stock exchange, allowing for liquidity and access to capital.
Quasi money, also known as near money, refers to assets that are not cash but can be quickly converted into cash with little or no loss of value.
A quick asset is any asset that can be converted into cash within a short timeline, typically 90 days or less.
Quick assets, also known as liquid assets, are cash and other assets that can be quickly converted into cash without significant loss of value. They are crucial in assessing the short-term liquidity and financial health of a business.
The Quick Ratio, also known as the Acid-Test Ratio or Liquid Ratio, is a measure of a company's ability to meet its short-term obligations using its most liquid assets.
A seasoned issue refers to securities that are typically from established companies, have gained a reputation for quality with the investing public, and enjoy a high level of liquidity in the secondary market.
A secondary market is a marketplace where investors buy and sell securities they already own. It differs from the primary market, where securities are initially issued. The secondary market provides liquidity and enables price discovery for traded assets.
The secondary mortgage market is a market for buying and selling mortgages that have already been issued or originated, providing significant liquidity to the mortgage market.
Share splitting involves dividing the share capital of a company into smaller units. This practice usually aims to make shares more affordable and increase their liquidity in the market.
A short-term note issuance facility (SNIF) is a financing arrangement through which an institution can issue short-term notes to investors. This facility provides liquidity and flexibility for the issuing entity to meet its short-term funding needs.
A marketplace for the sale and purchase of securities, where prices are determined by the forces of supply and demand. Stock exchanges facilitate capital raising for public companies, governments, and other entities, while providing liquidity for investors.
Transactions demand for money pertains to the necessity of keeping liquid assets, primarily cash, on hand to manage daily transactions. This is a fundamental motive for individuals and businesses to hold money.
The working capital ratio, also known as the current ratio, measures a company's ability to pay off its short-term liabilities with its short-term assets. It is a key indicator of financial health and efficiency.
