Renaissance for LEADERS

Peak Performance Resources for Leaders by Leaders

Tag: Cash

Asset Class

A grouping of similar types of investments which have similar financial characteristics and behave similarly in the marketplace.

There are five main classes which are:

  1. Equities (stocks): Owning a share of a company.
  2. Fixed Income (debt): Lending money to a company or government for interest.
  3. Cash or equivalents: Money in bank accounts, or in your pocket, foreign exchange.
  4. Real Estate: Owning something physical like property.
  5. Commodities: Natural resource commodities and precious metals like gold, platinum, silver, etc.

Capital

1. Material wealth in the form of money or property. 2. Wealth in the form of cash or property that can be used to earn income. 3. The net worth of a business, which is the amount by which its assets are greater than its liabilities. 4. What you own free and clear. 5. Money that can be used to produce further wealth. 6. Advantage derived from or useful in a particular situation. 7. Any resource or resources that can be used to generate economic wealth. 8. The capitalist class considered as a group. 9. The assets of a business that remain after its debts and other liabilities are paid or deducted.

Liquidity

1. The state of being liquid. 2. The quality of being readily convertible into cash: an investment with high liquidity. 3. Available cash or the capacity to obtain it on demand. 4. The ease with which an asset can be converted into money. Cash is liquid but shares in a company are less liquid because they must be sold in order to convert them into money. Assets such as property are even less liquid because they take longer to sell than shares.

Money

1. A amount of coins and bills in somebody’s possession at any one time. 2. The amount of money held in a bank account or available on credit to somebody. 3. The amount somebody is paid for working. 4. Assets or property that can be converted into cash. 5. The official currency of a country. 6. A commodity, usually gold, that is an official medium of exchange. 7. A measure of value. 8. A medium of exchange that can be used to purchase goods and services.

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