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Is an asset that can be sold quickly at a price that is 20% below its...

Is an asset that can be sold quickly at a price that is 20% below its fair market value marketable? Is it liquid? Explain your answer. (Maximum 3 sentences, maximum 100 words.)

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Answer #1

20% discount to its true value is too deep a discount to be classified as marketable or liquid. Technically a marketable security is liquid that can be converted to cash quickly. Had the discount been a few percentages then it can probably be classified as marketable and liquid. But not in this case.

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