Liquidity is the company's ability to fulfill its short-term obligations. Another definition is the ability of a person or company to fulfill obligations or debts that must immediately be paid for with smooth assets.
Liquidity is the company's ability to fulfill its short-term obligations. Another definition is the ability of a person or company to fulfill obligations or debts that must immediately be paid for with smooth assets.
Yes, you are correct. I think I was referencing market liquidity instead of liquidity. Market liquidity is more about how quickly you are able to sell off your shares of a company without drastically affecting the price, and how quickly you can make the sale. Both forms of liquidity here are important.