What is included in liquid capital?
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thomas
Apprentice
Joined: 01 Jul 2006
Posts: 4
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 Posted: 07/20/08 - 10:17 Post subject: |
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| I could really use some help from you. I’m trying to figure out some basic stuff about economy but to be honest, it seems to me that I don’t know the first thing about it. For example, I have no idea what is included in liquid capital. Could you explain me a bit closely this mysterious notion, if possible in simple language? |
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zebulen
Apprentice
Joined: 25 May 2006
Posts: 5
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| Posted: 08/19/08 - 01:07 Post subject: |
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| Oh, you are not the only one, so don’t get upset. People don’t understand all those concepts from economy because they are usually not used in regular language. Liquid capital is actually the amount of money which is ready to be used by a company or a person. This term can be compared to some long term assets which can’t be used or converted right away and in that group belongs for example real estate. Speaking very loosely, liquid capital can be money, that is, cash or checks or anything that can be spent or invested into something else. So, this actually means that you can use the assets you posses right away and that it is good if you have liquid assets. |
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