What does liquidity mean?
Liquidity definition\n\n Liquidity is a company's ability to convert assets to cash or acquire cash—through a loan or money in the bank—to pay its short-term obligations or liabilities. How much cash could your business access if you had to pay off what you owe today —and how fast could you get it?
What is liquidity with example?
Whether you are evaluating your investments or calculating your overall financial situation, liquidity is important to understand. Simply put, liquidity refers to how quickly you can convert something to cash and still maintain its value. Assets can be bought or sold, either as short-term or long-term investments.
What is liquidity and why is it important?
Liquidity generally refers to how easily or quickly a security can be bought or sold in a secondary market. Liquid investments can be sold readily and without paying a hefty fee to get money when it is needed.