Assignment X4.10

Discussion in 'SP7' started by code9063, Aug 5, 2015.

  1. code9063

    code9063 Member

    In (iii)
    The answer says there may be liquidity problems.

    Aren't equities liquid?
    Is it because equities can become worthless?
     
  2. Darren Michaels

    Darren Michaels ActEd Tutor Staff Member

    Equities are more liquid than some other types of investment (eg direct property). However, there will still be some liquidity risk. For example, you may need to sell the equities just after there has been a large fall in the stock market.
     

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