Liquidity Event — An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an exit strategy for an illiquid investment. Liquidity events are typically used in conjunction with venture capital/angel… … Investment dictionary
Liquidity preference — Finance Theory = John Maynard Keynes developed the Liquidity Preference of Interest in the General Theory of Employment Interest and Money. The primary consideration of the liquidity preference is the demand for money as an asset, as a means for… … Wikipedia
Liquidity risk — In finance, liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).Types of Liquidity Risk#Asset Liquidity An asset cannot be sold due to lack of… … Wikipedia
Liquidity trap — A liquidity trap is a situation described in Keynesian economics in which injections of cash into an economy by a central bank fail to lower interest rates and hence to stimulate economic growth. A liquidity trap is caused when people hoard cash… … Wikipedia
Central liquidity facility — The Central Liquidity Facility (CLF) is a mixed ownership United States (U.S.) government corporation created to improve the general financial stability of credit unions by serving as a liquidity lender to credit unions experiencing unusual or… … Wikipedia
Core Liquidity — Cash and other financial assets that banks possess that can easily be liquidated and paid out as part of operational cash flows. Examples of core liquidity assets would be cash, government bonds and money market funds. Banks typically use… … Investment dictionary
Exchange fund — An Exchange Fund or Swap Fund is a mechanism specific to the U.S., first introduced in 1999 that allows holders of large amount of a single stock to diversify into a basket of other stocks without directly selling their stock. The purpose of this … Wikipedia
Injection (economics) — When a central bank makes a short term loan to a member institution it is said to be injecting liquidity. In the United States, the Federal Reserve maintains a target federal funds rate for banks to loan money overnight to each other. If the… … Wikipedia
Startup company — A startup company or start up is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets. The term became popular internationally during the dot com bubble when… … Wikipedia
Exit Strategy — 1. The method by which a venture capitalist or business owner intends to get out of an investment that he or she has made in the past. In other words, the exit strategy is a way of cashing out an investment. Examples include an initial public… … Investment dictionary
