Liquidity

Extracted Attributes

• Core Concept

  Convertibility of assets and obligations

• Characteristic

  Ease of converting an asset or security into cash

• Most Liquid Asset

  Cash

• Type of Liquidity

  Liquidity risk (risk of impaired market liquidity)

Liquidity

Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: Market liquidity, the ease with which an asset can be sold Accounting liquidity, the ability to meet cash obligations when due Funding liquidity, the availability of credit to finance the purchase of financial asset Liquid capital, the amount of money that a firm holds Liquidity risk, the risk that an asset will have impaired market liquidity

Web Search Results

• Understanding Liquidity and How to Measure It - Investopedia

  Liquidity is the ease of converting an asset or security into cash, with cash itself being the most liquid asset of all. Other liquid assets include stocks, bonds, and other exchange-traded securities. Tangible items tend to be less liquid, meaning that it can take more time, effort, and cost to sell them (e.g., a home). [...] In other words, liquidity describes the degree to which an asset can be quickly bought or sold in the market at a price reflecting its intrinsic value. Cash is universally considered the most liquid asset because it can most quickly and easily be converted into other assets. Tangible assets, such as real estate, fine art, and collectibles, are all relatively illiquid. Other financial assets, ranging from equities to partnership units, fall at various places on the liquidity spectrum.1 [...] Market liquidity refers to the extent to which a market, such as a country’s stock market or a city’s real estate market, allows assets to be bought and sold at stable, transparent prices. In the example above, the market for refrigerators in exchange for rare books is so illiquid that it does not exist.2

• Market liquidity - Wikipedia

  In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold. In a liquid market, the trade-off is mild: one can sell quickly without having to accept a significantly lower price. In a relatively illiquid market, an asset must be discounted in [...] In banking, liquidity is the ability to meet obligations when they come due without incurring unacceptable losses. Managing liquidity is a daily process requiring bankers to monitor and project cash flows to ensure adequate liquidity is maintained. Maintaining a balance between short-term assets and short-term liabilities is critical. For an individual bank, clients' deposits are its primary liabilities "Liability (financial accounting)") (in the sense that the bank is meant to give back all [...] Read Edit View history General What links here Related changes Upload file Permanent link Page information Cite this page Get shortened URL Download QR code Expand all Edit interlanguage links Print/export Download as PDF Printable version In other projects Wikidata item From Wikipedia, the free encyclopedia Finance property of an asset For other uses, see Liquidity (disambiguation) "Liquidity (disambiguation)").

• Liquidity - Definition, Examples, Finance

  In financial markets, liquidity refers to how quickly an investment can be sold without negatively impacting its price. The more liquid an investment is, the more quickly it can be sold (and vice versa), and the easier it is to sell it for fair value or current market value. All else being equal, more liquid assets trade at a premium and illiquid assets trade at a discount. [...] In accounting and financial analysis, a company’s liquidity is a measure of how easily it can meet its short-term financial obligations. Image 2: Liquidity illustration - Market Liquidity and Financial Liquidity ### Ranking of Market Liquidity (Example) Below is an example of how many common investments are typically ranked in terms how quickly and easily they can be turned into cash (of course, the order may be different depending on the circumstances). Liquidity rankings: [...] Items on a company’s balance sheet are typically listed from the most to the least liquid. Therefore, cash is always listed at the top of the asset section, while other types of assets, such as Property, Plant & Equipment (PP&E), are listed last. In finance and accounting, the concept of a company’s liquidity is its ability to meet its financial obligations. The most common measures of liquidity are:

• Liquidity - Simply Explained - Munich Business School

  Liquidity refers to the ability of a company or an individual to settle short-term liabilities easily and on time. It reflects how quickly and efficiently assets can be converted into cash without losing significant value. [...] In a business context, liquidity refers to the availability of means of payment, such as cash and bank balances, and the ability to mobilize these funds in a timely manner. A high level of liquidity means that a company is able to meet its ongoing obligations, such as paying salaries, servicing suppliers and covering unexpected expenses, without having to resort to external sources of funding. [...] In the financial world, liquidity is also a measure of the ease with which securities or other assets can be bought or sold on the market. A liquid market is characterized by high trading activity and low price volatility, which allows participants to execute transactions quickly and without high costs. There are various forms of liquidity:

• Liquidity - Wikipedia

  What links here Related changes Upload file Permanent link Page information Cite this page Get shortened URL Download QR code Edit interlanguage links Print/export Download as PDF Printable version In other projects Wikidata item From Wikipedia, the free encyclopedia Image 4 Look up _liquidity_ in Wiktionary, the free dictionary. Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: [...] Market liquidity, the ease with which an asset can be sold Accounting liquidity, the ability to meet cash obligations when due Liquid capital, the amount of money that a firm holds Liquidity risk, the risk that an asset will have impaired market liquidity See also -------- \[edit\] Liquid (disambiguation) "Liquid (disambiguation)") Liquidation (disambiguation) "Liquidation (disambiguation)") Image 5: Disambiguation icon Index of articles associated with the same name [...] Contents -------- move to sidebar hide (Top) 1 See also Liquidity ========= 6 languages Ελληνικά "Ρευστότητα (αποσαφήνιση) – Greek") Français 日本語 Polski Slovenčina Türkçe Edit links Article Talk English Read Edit View history Tools Tools move to sidebar hide Actions Read Edit View history General

• Instance Of

  Q4167410