Financial Dictionary

This dictionary contains:
24549
financial terms

Liquidity preference




Liquidity preference

The public's demand for money in cash or current bank accounts; money which is saved rather than spent or lent.

RELATED TERMS
--------------------------------------

Money
A means of payment, especially coins and banknotes, although some definitions also include bank deposits, checks, etc.

Cash
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances.

Bank
A commercial institution licensed as a receiver of deposits. Banks are mainly concerned with making and receiving payments as well as supplying short-term loans to individuals.



SIMILAR TERMS
--------------------------------------

LIQUEFIED NATURAL Gas Limited
LIQUEFIED NATURAL Gas Limited is a large Australian company in the field of energy. Their Australian Stock Exchange (ASX) code is LNG.

Liquid
Easily traded or converted to cash.

Liquid asset
Cash or items which can readily be converted to cash.  

Liquid market
A market with many bid and ask offers. The market is characterized by high liquidity, low spreads, and low volatility.

Liquid yield option note (LYON)
A zero coupon bond that is callable (by issuer), putable (by investor), and convertible. LYONs are synthetic products that are financially engineered by Merrill Lynch.

Liquidate
To sell personal assets in order to pay creditors.

Liquidated damages
Present in certain legal contracts, this provision allows for the payment of a specified sum should one of the parties be in breach of contract.

Liquidating dividend
Payment by a firm to its owners from capital rather than from earnings.

Liquidation
1) When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. 2) Any transaction that offsets or closes out a long or short position.

Liquidation by assignment
Sale or realization of a debtor firm's assets voluntarily agreed to by its creditors who estimate that the firm's liquidation value exceeds its going-concern value.

Liquidation or receivership-winding up
The compulsory sale of the assets of a bankrupt company.

Liquidation rights
The rights of a firm's security holders in the event the firm liquidates.

Liquidation value
A balance sheet concept that represents the amount of money that could be realized by breaking up the company, selling its assets, repaying its debt, and distributing the remainder to its stockowners.

Liquidation World
Liquidation World is one of Canada's largest companies.

Liquidator
An official appointed to supervise the liquidation of a company.

Liquidator or administrator
Person appointed by a court who realizes (turns into cash) a company's assets in order to repay creditors.

Liquidity
The degree to which assets of a company or an investment can easily be sold or converted into cash.

Liquidity diversification
Investing in a variety of maturities to reduce the price risk to which holding long bonds exposes the investor.

Liquidity preference hypothesis
The argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates.

Liquidity premium
Forward rate minus expected future short-term interest rate.

Liquidity ratios
Ratios that measure a firm's ability to meet its short-term financial obligations on time, such as the ratio of current assets to current liabilities.

Liquidity risk
In banking, risk that a depository institution will not have sufficient cash or liquid assets to meet borrower and depositor demand.

Liquidity theory of the term structure
A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market's expectations of future interest rates because they embody a liquidity premium.

Liquor Stores Income Fund
Liquor Stores Income Fund is one of Canada's largest companies.



PREVIOUS AND NEXT TERMS
--------------------------------------

Liquidation value
A balance sheet concept that represents the amount of money that could be realized by breaking up the company, selling its assets, repaying its debt, and distributing the remainder to its stockowners.

Liquidator
An official appointed to supervise the liquidation of a company.

Liquidator or administrator
Person appointed by a court who realizes (turns into cash) a company's assets in order to repay creditors.

Liquidity
The degree to which assets of a company or an investment can easily be sold or converted into cash.

Liquidity diversification
Investing in a variety of maturities to reduce the price risk to which holding long bonds exposes the investor.

Liquidity preference

Liquidity preference hypothesis
The argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates.

Liquidity premium
Forward rate minus expected future short-term interest rate.

Liquidity ratios
Ratios that measure a firm's ability to meet its short-term financial obligations on time, such as the ratio of current assets to current liabilities.

Liquidity risk
In banking, risk that a depository institution will not have sufficient cash or liquid assets to meet borrower and depositor demand.

Liquidity theory of the term structure
A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market's expectations of future interest rates because they embody a liquidity premium.

We thank you for using the Financial Dictionary to search for Liquidity preference. If you have a better definition for Liquidity preference than the one presented here, please let us know by making use of the suggest a term option. This definition of Liquidity preference may be disputed by other professionals. Our attempt is to provide easy definitions on Liquidity preference and any other medical topic for the public at large.
 

This dictionary contains 24549 terms.







liquiditypreference / iquidity preference / lquidity preference / liuidity preference / liqidity preference / liqudity preference / liquiity preference / liquidty preference / liquidiy preference / liquidit preference / liquiditypreference / liquidity reference / liquidity peference / liquidity prference / liquidity preerence / liquidity prefrence / liquidity prefeence / liquidity prefernce / liquidity preferece / liquidity preferene / liquidity preferenc / lliquidity preference / liiquidity preference / liqquidity preference / liquuidity preference / liquiidity preference / liquiddity preference / liquidiity preference / liquiditty preference / liquidityy preference / liquidity preference / liquidity ppreference / liquidity prreference / liquidity preeference / liquidity prefference / liquidity prefeerence / liquidity preferrence / liquidity prefereence / liquidity preferennce / liquidity preferencce / liquidity preferencee / oiquidity preference / piquidity preference / ;iquidity preference / .iquidity preference / ,iquidity preference / kiquidity preference / iiquidity preference / lquidity preference / li1uidity preference / li2uidity preference / liwuidity preference / lisuidity preference / liauidity preference / liq7idity preference / liq8idity preference / liqiidity preference / liqkidity preference / liqjidity preference / liqhidity preference / liqyidity preference / liq6idity preference / liqudity preference / liquieity preference / liquirity preference / liquifity preference / liquivity preference / liquicity preference / liquixity preference / liquisity preference / liquiwity preference / liquidty preference / liquidi5y preference / liquidi6y preference / liquidiyy preference / liquidihy preference / liquidigy preference / liquidify preference / liquidiry preference / liquidi4y preference / liquidit6 preference / liquidit7 preference / liquiditu preference / liquiditj preference / liquidith preference / liquiditg preference / liquiditt preference / liquidit5 preference / liquidity 0reference / liquidity -reference / liquidity [reference / liquidity ;reference / liquidity lreference / liquidity oreference / liquidity 9reference / liquidity p4eference / liquidity p5eference / liquidity pteference / liquidity pgeference / liquidity pfeference / liquidity pdeference / liquidity peeference / liquidity p3eference / liquidity pr3ference / liquidity pr4ference / liquidity prrference / liquidity prfference / liquidity prdference / liquidity prsference / liquidity prwference / liquidity prererence / liquidity preterence / liquidity pregerence / liquidity preberence / liquidity preverence / liquidity precerence / liquidity prederence / liquidity preeerence / liquidity pref3rence / liquidity pref4rence / liquidity prefrrence / liquidity preffrence / liquidity prefdrence / liquidity prefsrence / liquidity prefwrence / liquidity prefe4ence / liquidity prefe5ence / liquidity prefetence / liquidity prefegence / liquidity prefefence / liquidity prefedence / liquidity prefeeence / liquidity prefe3ence / liquidity prefer3nce / liquidity prefer4nce / liquidity preferrnce / liquidity preferfnce / liquidity preferdnce / liquidity prefersnce / liquidity preferwnce / liquidity preferebce / liquidity preferehce / liquidity preferejce / liquidity preferemce / liquidity prefere ce / liquidity preferenxe / liquidity preferense / liquidity preferende / liquidity preferenfe / liquidity preferenve / liquidity preferen e / liquidity preferenc3 / liquidity preferenc4 / liquidity preferencr / liquidity preferencf / liquidity preferencd / liquidity preferencs / liquidity preferencw /