Two factors come into play: First, good quality applicators do a better job of applying paint, and more uniformly, than poor applicators. As a result, they achieve better hide, or coverage. Second, painting technique is a factor that could contribute to overspreading the product.
Liquidation and Free Riding. A liquidation violation occurs when the client sells a security to satisfy a cash obligation for the purchase of a different security after trade date. This is a violation because the sale of the second security will not be settled by the time the first purchase settles.
Establish the liquidation value of your assets. Liquidation value refers to the amount you can expect to recover in a forced sale situation. Generally, this amount is at least 20 percent less than retail value. To establish the liquidation value of your assets, work with a qualified appraiser.