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 » | Understanding financial liquidity | Financial liquidity comes into play for companies, your personal finances, investing, and the financial markets. However, assets and investments have varying liquidity levels. | Read More » | | Current Assets | Current assets is a balance sheet item 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 | Quick assets are those owned by a company with a commercial or exchange value that can easily be converted into cash or that is already in a cash form. | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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