Posted in Finance, Accounting and Economics Terms, Total Reads: 677

Definition: Liquidity

Liquidity refers to the valuation of an asset into cash.

Assets which can be sold for return of cash are termed as liquid.

Liquidity can also be referred to as the amount of capital that a firm can garner for investment or spending.IT IS THE MONEY -BY THE COMPANY, FOR THE COMPANY.

Borrowed money or debt is not a part of the liquidity.

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