Monday, November 24

External liquidity

External liquidity
· Total market value of o/s securities (no of common stocks o/s x market price per share)
· no of shareholders-more shareholders translates to greater liquidity
· Trading turnover (no of shares traded in a year / total no of shares o/s)

Traditional car dealership against internet-based dealership:
· lower asset turnover (due to larger capital tied up in physical facilities);
· higher gross profit margin ( due to keen competitive over internet)

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