All other liquid assets must be able to be quickly and efficiently converted into cash, i.e., financial liquidity. This is due to its widespread acceptance and ease of conversion into other assets, forms of cash, or currencies, etc. Which of the following assets is the most liquid? By definition, in terms of liquidity, cash is unequivocally seen as the most liquid asset in an economic sense. Its primary function is to ascertain how quickly a given asset can be bought, sold, or exchanged without a disparity in market price. What is the Definition of Liquidity? Liquidity is a common definition used in investing, banking, or the financial services space. The most common ways to do so include a current ratio, quick ratio, and cash ratio. Liquidity refers to a tangible construct that can be measures.This can be differentiated as market liquidity or accounting liquidity. Nothing is more liquid than cash, while other assets represent varying degrees of liquidity.In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price.The most liquid asset of all is cash itself. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash. The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Our industry-leading businesses and robust capital and Liquidity “Ally's long-term strategic priorities remain intact, rooted in a relentless focus on our customers. The deal would also have resulted in the merger of Merrick Bank, a wholly-owned subsidiary of CardWorks, into Ally Bank. Read this Term and merger deal went through, that would have further diversified Ally’s financial product offerings with both secured and unsecured products. Finally, a concentric acquisition occurs when companies will share customers but provide different services. Conversely, a vertical acquisition means two companies join forces in the same industry, but they are at different points on the supply chain.Moreover, a conglomerate represents two companies in different industries join forces, or one takes over the other to broaden their range of services and products. A horizontal acquisition is when two companies come together with similar products/services. In finance, there are several types of acquisitions that one speaks of when referring to Acquisitions and Mergers. Buying more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company's shareholders. An acquisition is when one business, person, or company purchases most if not of another company's shares to gain control of that company. Companies also may acquire units of a company, property, or other assets. An acquisition can be either an agreed deal or a hostile takeover. How Companies Utilize AcquisitionsIn finance, the term acquisition is most often used when referring to taking control of a company. There are many ways to acquire or to take the acquisition of property and services. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. To put it simply, it is the act or process of acquiring or gaining. Upon the set terms, Ally would have paid $1.35 billion in cash and $1.30 billion in common stock, or 39.5 million shares for CardWorks.Īcquisition means acquiring or taking possession or the securing of property, services, or abilities. It has $4.7 billion in assets and $2.9 billion in deposits, the company disclosed during the original merger report.

Understanding Liquidity and Market LiquidityĬardWorks is a major credit card issuer targeting the “non-prime” customers.Volt Bank Returns All Customer Deposits as a Part of Shuttering Process.

Cardworks stock