When someone has a leasehold, they own the home for a fixed term, but not the property that it sits on, and a freehold describes a person owning the home and the land it is on. With a freehold, there is no term on how long the person can own the property.
Both a leasehold and a freehold are common types of legal home ownership in British commonwealth countries, specifically Wales and England. Many people prefer a freehold because this means that they own the total property and they do not have to worry about paying any annual ground rent. Most people sell whole houses this way.Learn More
Liquidity refers to the assets a company has that it can quickly and easily convert to cash without losing value, and profitability is a company's ability to make a profit. Companies with high liquidity trade often and have a large number of liquid assets, those things that can be bought and sold quickly, as needed.Full Answer >
The main difference between financial and real assets is that financial assets are cash and securities, such as stocks and bonds, whereas real assets represent tangible possessions, such as real estate, production equipment and inventory. Generally, financial assets are more liquid than real assets because they can be readily converted to cash. Real assets take considerably more time to sell.Full Answer >
Nominal income is the amount of an employee's salary that is paid in cash, whereas real income is the amount the employee receives after accounting for inflation. This means that the nominal income is always the highest of the two figures. Even when an individual has access to more money, her purchasing ability may be low because of inflated prices.Full Answer >
The difference between a credit union and a bank is the ownership. Credit unions are non-profit cooperatives owned by their members, while banks are for-profit entities. They are also insured by different federal agencies; credit unions are insured by the NCUSIF and banks are insured by the FDIC.Full Answer >