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| Limit Order |
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| An order to buy a security at or below the current market price, or to sell it above or at the current market price. |
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| Liquid (Asset) |
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| Assets easily convertible to cash with little impact on price. |
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| Liquid Market |
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| A market allowing the buying or selling of large quantities of an asset at any time and at low transactions costs. |
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| Liquidation |
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| Upon a brokerage client's failure to meet a margin call, the closing of positions within the account. If the position is long, the security is sold. If the position is short, the security is bought.
Also, the dissolution of a company in which its assets are sold to pay its debts. Any remaining cash is distributed to its shareholders. |
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| Liquidity |
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| Refers to the ease with which investments can be converted to cash at their present market value. Additionally, liquidity is a condition of an investment that shows how greatly the investment price is affected by trading. An investment that is highly liquid is composed of enough units (such as shares) that many transactions can take place without greatly affecting the market price. High liquidity is associated with a high number of buyers and sellers trading investments at a high volume. |
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