Stocks are generally considered a long-term investment since they can be volatile over the short term.
However, this volatility is what encourages some stock investors to become short-term traders, in an attempt to capture a quick profit.
Working capital, the current ratio, and the quick ratio are referred to as , since their calculations use some or all of the current assets and the current liabilities.
Sometimes a company's accounts receivable turnover ratio, inventory turnover ratio, and free cash flow are also used to assess a company's liquidity.
So there tends to be at least an informal minimum threshold below which the trustee will usually not bother to "declare an asset case." Because that threshold amount can depend on your circumstances, and even be different for each trustee, be sure to talk with your attorney about this. If the asset at issue will not be easy to collect and/or sell, the trustee may decided that the cost and risks involved are not be worthwhile.
Some traders like to sell a stock at the first hint of bad news to avoid large losses.
In contrast, a Chapter 7 case which has assets that are NOT exempt-so that the trustee has assets to take, sell, and distribute-that's an "asset case." Now, just because you own something that is not fully exempt does not necessarily mean that the trustee will necessarily take those assets. The value of the assets may not be enough to justify taking them.
A trustee does not want to go through a set of legal procedures to collect and distribute assets in a Chapter 7 case if the amount to be collected is just not worth the trouble.
If you own anything that does NOT fit within a list of "exempt" (protected) assets, they must be turned over to your bankruptcy trustee.
The trustee then sells those assets and distributes the money to your creditors.