Time limit. The term referred to in this article refers to the repayment term agreed by general financial instruments. The repayment period refers to the time required for the debtor to borrow the debt and fully repay the principal and interest. There are also two extreme situations in the repayment period of financial instruments: zero term and unlimited term.
Liquidity Liquidity refers to the ability of financial instruments to be quickly converted into cash when necessary without suffering losses. The liquidity of financial instruments is inversely proportional to the repayment period. The profitability of financial instruments and the issuer's credit status are also important factors to determine liquidity.
Risk. Risk refers to the possibility of loss of principal and predetermined income of financial instruments. Risks may come from credit risk and market risk.
Profitability. Profitability refers to the characteristics that financial instruments can bring value added. To compare the rate of return, we should analyze the factors such as bank deposit interest rate, inflation rate and the rate of return of other financial instruments, and also examine the risks.