High liquidity suggests a company can pay off debts quickly, indicating financial health. Tech startups often struggle to achieve the liquidity needed for expansion.
Pro Tip 2/3
Market Confidence
Liquidity in markets inspires investor confidence and boosts economic activity. Stocks in large companies offer liquidity and attract more investors.
Pro Tip 3/3
Quick Cash
Mentioning liquidity usually refers to assets easily turning into cash. During crises, companies may sell assets to increase liquidity.