Wikipedia / Liquidity
Wikipedia / 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