Buy custom Liquidity: How it affects investments
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Business
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| Number of pages / Number of words: |
5 / 1198 |
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These investments are usually easily sold and converted to money, although they can sometimes be associated with a slight penalty for conversion before maturity. Investors who are more risk seeking will purchase these assets because they know they offer higher rates of return and they are still relatively liquid...
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Investors that hold certificates of deposits (CDs), for example, hold little risk other than if they need cash and they have to exchange their CD and receive a penalty. Another example is the stock market, which is considered very liquid, especially the large-scale companies and indexes such as the S&P 500...
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