Discuss spot that businesses need to balance

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Question: Liquid securities have a lot of pros and cons when it comes to being invested into a business. Liquid assets are highly flexible investments that can be swapped from cash to liquidity and vice versa. These can be a benefit due to immediate need of funds and easy transfers for the investor and have lower risk than full on investments. However, these can be harmful due to their ever flowing state. In the case where the business is hurt and the market is hurting as well, these liquid securities value can take a hard hit. Finding a nice balance to have a low-risk, reward ratio is the sweet spot that businesses need to balance for their own benefit. Discuss

Reference no: EM133326305

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