What is Liquidity?
A definition of Liquidity
“Liquidity refers to how quickly and easily an asset or security can be converted into cash without affecting its market price.”

Business Glossary > What is Liquidity?
Examples of Liquidity in a Sentence:
Liquidity is essential for companies to meet their short-term obligations.
The company’s liquidity was boosted by the sale of its non-core assets.
Investors prefer stocks with higher liquidity for ease of transaction.
Why is Liquidity Important in Business?
Liquidity is crucial for businesses to ensure they can cover their immediate expenses and obligations. Companies with higher liquidity can more easily maneuver financial challenges and avoid insolvency.
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Associated Terms
Here are some associated business terms and synonyms for “Liquidity”:
- Cash Flow
- Marketability
- Solvency
Apple Inc. Liquidity
Apple Inc. maintains a high level of liquidity, enabling it to invest in new technologies, return capital to shareholders, and navigate economic fluctuations effectively.
Final Notes on Liquidity
Businesses must regularly assess their liquidity to ensure they can meet both expected and unexpected financial demands. This involves careful management of assets and liabilities to maintain financial health.
This has been a definition of Liquidity meaning.
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