How does the time dimension of investing relate to the concept of liquidity?
What will be an ideal response?
Answer: Liquidity concerns the ability to liquidate an asset for a fair market price in a reasonable amount of time. The time dimension of investing means that having sufficient time available until you need your funds allows you invest in less liquid assets that generally have a higher return. The stock market is very volatile and it is common for there to be severe market downturns from time to time. To someone who needs their money now, they would not want to have to liquidate while the market value of their stocks has plummeted, causing them a serious financial loss. Historically, the markets will recover and investors who were not forced to liquidate at the lower market values will recover most if not all of their capital. For a younger investor, a severe market downturn represents a tremendous buying opportunity since many good stocks are 'on sale'. To an older investor who is not properly diversified, a severe market downturn could seriously interrupt their retirement goals causing financial stress and anxiety.
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A) Sell the customer the exact components that will integrate with the customer's current system. B) Speed the transaction along so that the customer can purchase quickly. C) Offer a lower price if the customer buys more than one system. D) Offer to demonstrate the product in the customer's office. E) Allow the customer to see a demo of the product online to see how they will be able to use the product.
Notice of proposed rulemaking must be published in the Federal Register regarding:
a. formal rulemaking proceedings b. informal rulemaking proceedings c. both formal and informal rulemaking proceedings d. Neither of the above. Publication is by publication in the Congressional Record.