Nifty 50
Sensex
US Tech 100
Dow Jones
FTSE
Dax
CAC
Nikkei 225
Hang Seng
SSE Composite
TAIEX
KOSPI
Gift Nifty
Strategy Indices
Broad Market Indices
Sectoral Indices
Thematic Indices
Home
Finance GlossaryIlliquid Asset
Illiquid Asset
Definition of Illiquid Asset
An illiquid asset is something of value that can not be exchanged for cash easily. Although an illiquid asset may have value, you will not be able to find buyers for it readily. As a result, illiquid assets are typically sold at a significant discount or worse, lose value and expire.
Related Terms
Book Value
Book value of an asset is what you get by subtracting its accumulated depreciation from the original cost of the asset.
That’s why book value is referred to as the Net Asset Value (NAV) in the UK.
For a company, the book value is its total assets subtracted by liabilities, intangible assets and/or goodwill.
That’s why book value is referred to as the Net Asset Value (NAV) in the UK.
For a company, the book value is its total assets subtracted by liabilities, intangible assets and/or goodwill.
Future Trading
Futures trading is the buying and selling of futures contracts on a recognized exchange or over the counter. Futures contracts are derivatives that oblige a trader to buy or sell the underlying security at a predetermined price and date.
Trading futures is possible for equity shares, commodities, currencies, as well as interest rates. Those who trade futures are generally classified as speculators or hedgers.
Speculators trade futures to make a profit. Hedgers delve into futures trading to manage risk, which simply means protecting themselves from unfavorable movements in the market.
Trading futures is possible for equity shares, commodities, currencies, as well as interest rates. Those who trade futures are generally classified as speculators or hedgers.
Speculators trade futures to make a profit. Hedgers delve into futures trading to manage risk, which simply means protecting themselves from unfavorable movements in the market.
Moving Average Convergence Divergence (MACD)
Moving Average Convergence Divergence (MACD) is a popular momentum indicator used to identify trend direction and strength. It is derived by taking the difference between a short-period EMA and a long-period EMA and is typically used along with a signal line to spot potential buy or sell signals.
Balance Sheet
A balance sheet is a financial statement that reveals a company’s assets, liabilities, and shareholders’ equity. It can help current and potential investors understand the financial health of a company.
These are some of the key components of a balance sheet:
These are some of the key components of a balance sheet:
- Current assets : Cash & cash equivalents, marketable securities, accounts receivable, inventories, prepaid expenses, and other liquid assets
- Fixed assets : Property, equipment, furniture, machinery, software, and other intangible assets
- Current liabilities : Short-term debt, unearned revenue, accounts payable, other accrued expenses & liabilities
- Long Term liabilities : Long-term loans, bonds, and others
- Shareholders’ equity : Paid-in capital and retained earnings
Treasury Bills (T-Bills)
Treasury Bills (T-Bills) are short-term debt instruments issued by the government with maturities typically ranging from a few days up to one year. They are considered low-risk investments and are sold at a discount to face value. The return is earned through the difference between purchase price and maturity value.
Interest Coverage Ratio
Interest Coverage Ratio (ICR) is used to determine the likelihood of a company’s ability to pay interest on existing outstanding debt. A low ICR typically indicates that a company is less likely to pay interest.
In fact, it indicates that the company may be heading towards bankruptcy. A higher ICR means that a company’s financial health is solid and more than likely to pay interest on existing outstanding debt.
In fact, it indicates that the company may be heading towards bankruptcy. A higher ICR means that a company’s financial health is solid and more than likely to pay interest on existing outstanding debt.
Invest & Trade with a Trading
Platform That's #MadeForTrade
Open your Dhan Account in minutes!
