Definition of "Liquidity of assets"

Debra & Dennis Rutledge real estate agent

Written by

Debra & Dennis Rutledgeelite badge icon

The Pipal Group

Financial holdings that can be converted into cash in a timely manner without the loss of principal, such as U.S. Treasury Bills. Liquidity of assets is one of the most important principles of investment strategies, especially the first layer of an investment portfolio. Life insurance is generally placed in this first layer because of its cash value. The owner has complete liquidity since it can be used as collateral for a loan a any time.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Coverage against foreign country expropriation underwritten by the overseas private investment corporation (OPIC) for U.S.-owned companies investing in given developing countries. ...

Designation of a policy's death benefit or its cash surrender value to a creditor as security for a loan. If the loan is not repaid, the creditor receives the policy proceeds up to the ...

Insurance that follows an insured property. ...

Insurance for accountants covering liability lawsuits arising from their professional activities. For example, an investor bases a buying decision on the balance sheet of a company's annual ...

Monetary value of the reputation of a business. Goodwill is an intangible asset and thus may be difficult to measure. ...

Same as term Canadian Institute of Actuaries: ...

Act providing that stringent regulatory actions may be taken against depository institutions according to their level of capital adequacy: well capitalized; adequately capitalized; under ...

Coverage on data processing equipment, data processing media (such as magnetic tapes, disks), and extra expense involved in returning to usual business conditions. The data processing ...

One of four SEC divisions that administers the procedure through which public companies must disclose all relevant material in order that a potential investor might make an informed ...

Popular Insurance Questions