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Q: please tell me what "liquidate" is

Category: glossary , Asked by: L. Carlson from Dublin, Ireland

A: 1. To convert assets into cash or equivalents by selling them on the open market. 2. When an entity chooses or is forced by a legal judgment or contract to turn assets into a "liquid" form (cash). 1. An individual may choose to liquidate his or her possessions or investments to pay off creditors, convert assets to cash for spending or because the investments are not going to increase in value and the investor wants to re-allocate funds. 2. Businesses are best known to liquidate assets as a part of bankruptcy procedure, but the process can also be used by businesses to free up cash, even in the absence of financial hardship. Visit AVA FX

  1. Q: Are you familiar with a foreign exchange platform that's popular for its progressive educational courses for first time users?

    Category: platform , Asked by: Kristian S. From Kelowna, Canada

    A: We think the best place for your purpose is "etoro.com". They have excellent handbooks for beginners, with great instructions and dialog boxes. You can certainly enjoy some of them.

  2. Q: do you know what "capital loss" is?

    Category: glossary , Asked by: William Q. From Ireland

    A: The loss incurred when a capital asset (investment or real estate) decreases in value. This loss is not realized until the asset is sold for a price that is lower than the original purchase price. A capital loss is essentially the difference between the purchase price and the price at which the asset is sold, where the sale price is lower than the purchase price. For example, if an investor bought a house for $250,000 and sold the house five years later for $200,000, the investor would realize a capital loss of $50,000.

  3. Q: do you know what a "country risk" is?

    Category: glossary , Asked by: J. Morales from Ireland

    A: the "country risk " is A collection of risks associated with investing in a foreign country. These risks include political risk, exchange rate risk, economic risk, sovereign risk and transfer risk, which is the risk of capital being locked up or frozen by government action. Country risk varies from one country to the next. Some countries have high enough risk to discourage much foreign investment. Country risk can reduce the expected return on an investment and must be taken into consideration whenever investing abroad. Some country risk does not have an effective hedge. Other risk, such as exchange rate risk, can be protected against with a marginal loss of profit potential. The United States is generally considered the benchmark for low country risk and most nations can have their risk measured as compared to the U.S. Country risk is higher with longer term investments and direct investments, which are investments not made through a regulated market or exchange.

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