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Zircon Co.: Liquidity For Buying Shares

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Making a profit is the main objective for any business, and to reach this profit and being able to be always in profitability mode, we should think about many aspects like: the regular revenue that we are looking to get it to reach our objectives, risks that may arise during our business life, and the level of liquidity that will practise to make or invest in any kind of commerce.
Buying shares is one kind of investment, for that in our case of questioning ourselves before investing in Gas Co. or Zircon Co. any professional analysis should consider the three aspects that mentioned above, not only looking for the high return of the share, nevertheless the most important aspect is to think about the riskiness of investing in such company as mentioned in the case, the risk rating in Gas co. is AAA which is the best rate rather than BB- in Zircon Co. And the question about liquidity for buying shares should be asked as follow: do we have enough money to buy the number of shares we want and need or not: as in this case the price of per share is $16 in Gas co. or the cheapest price of $8 in Zircon co.? The choice would be for the Gas Co. not only because of the high return of the share by $0.32 whereas the return of the Zircon co. share is $0.16, but because the risk rating in Gas co. AAA is healthier than the Zircon Co BB-. and this is an advantage for selecting it, but one thing …show more content…
than the price of the share in Zircon Co. and this mean that the price of one share in Gas Co. will be the price of two shares in Zircon Co. so, the quantity of the shares would be more when deciding to buy

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