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

Statement issued by the insurance company denying a claim under the insurance policy on the grounds that a condition or policy provision has been breached. ...

Wrongful conduct causing false arrest, invasion of privacy, libel, slander, defamation of character, and bodily injury. The injury is against the person in contrast to property damage or ...

Crime against the state for which an officer of the state can bring legal action. Society is harmed by an individual breaking the laws of the state. Usually there is no statue of ...

Coverage for liability for damage to property of others from untimely discharge of fire-fighting sprinkler systems. This coverage is available as an endorsement to broad-form comprehensive ...

Payment to an insurance agent in addition to commissions. Expense allowances, that differ from company to company, vary with the amount of business agents place with that company and the ...

Life insurance contract that combines TERM LIFE INSURANCE with WHOLE LIFE INSURANCE. The term portion of the contract expires after a stipulated time period. If the insured dies during this ...

Method of depreciating an asset in which its useful life is divided into an appropriate number of years (or other periods), the final salvage value is deducted, and the asset is written off ...

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 ...

Applicable rate, in property insurance, of each location multiplied by the value of the real and/or personal property at that location, all of which is divided by the total value of all ...

Popular Insurance Questions