To Be Considered Liquid,a Security Must

question 90

Multiple Choice

To be considered liquid,a security must:

• A) be held in a cash account.
• B) pay dividends.
• C) be able to be sold on short notice.
• D) be held for less than one year.
• E) be able to be sold quickly with little, if any, price concession.

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Definitions:

Risk-free Rate

The theoretical return on an investment with zero risk, often represented by the yield on government securities like U.S. Treasury bills.

Real Estate

Property consisting of land or buildings, and anything affixed to the land, that has economic value.

Mutual Fund Shares

Units of ownership in a mutual fund, offering investors a proportionate stake in the fund's portfolio and its income.

Debt Securities

Bonds; also called fixed-income securities.