Found 1 blog entry tagged as Liquidity.

What Exactly Is Liquidity?

The efficiency or convenience with which an asset or security can be converted into immediate cash without influencing its market price is referred to as liquidity. Cash is the most liquid of all assets.

Important Takeaways

  • The ease with which an asset, or security, can be changed into immediate cash without impacting its market price is referred to as liquidity.
  • The most liquid asset is cash, while tangible assets are less liquid. Market liquidity and accounting liquidity are the two basic types of liquidity.
  • Liquidity is typically measured using current, quick, and cash ratios.

Liquidity: An Overview

To put it another way, liquidity refers to the ease with which an item can be bought or sold in the…

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