Tuesday, October 9, 2018

What is 'Liquidity'?

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.
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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
Related to "Liquidity"
Understanding Financial Liquidity
Understanding how this measure works in the market can help keep your finances afloat. Read More
Financial Analysis: Solvency vs. Liquidity Ratios
Solvency and liquidity are equally important for a company's financial health. 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
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Related Definitions
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
Overall Liquidity Ratio
Overall liquidity ratio is the measurement of a company's capacity to pay for its liabilities with its assets. 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
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