Liquidity is the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.
| Liquidity | Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. | | Breaking it Down: | Cash is considered the standard for liquidity, because it can most quickly and easily be converted into... Read More | | | | | What is liquidity risk? | Learn how to distinguish between the two broad types of financial liquidity risk: funding liquidity risk and market liquidity risk. Read More | | | | | | | Current Assets | Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted into cash within one year. Read More | | | | | Acid-Test Ratio | The acid-test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities. Read More | | | Quick Assets | Anything having commercial or exchange value that can easily be converted into cash, or that is already in cash form. Read More | | | | | | | | | Follow Us: | | | | | | | | |
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