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Tip of the Day

Tip of the Day Put At Least 20% Down On A Home

Put At Least 20% Down On A Home - Your home is most likely the biggest purchase you will make in your lifetime, so when planning for the big day,...

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Liquidity

Definition: Liquidity refers to the ability of people to get into and out of investments.  A "liquid" stock is a stock with a lot of volume that is easy to buy and sell.

TeenAnalyst Advice: A liquid investment is one that you can buy and sell easily and quickly.  An example of a liquid investment is a bank account.  You can go to the bank and take your money out quickly and easily.  An example of an illiquid investment would be real estate.  If you want to sell your house, you have to put it on the market and could end up waiting over a year to get your money.

Understanding how liquid you need to be is important.  Obviously, if you're in college, you want to be liquid so you can make your tuition payments.  If you're retired, you'll want to be liquid to pay your living expenses.

 

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Definition of the Day Drop Shipping

Drop Shipping? - Drop shipping is where the supplier of merchandise sends any purchases directly to retail clients. They will maintain the storage and all other warehouse functions so the retailer doesn’t have to keep the items in his or her store. Plus with this type of program the retailer...

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