liquidity

Example:High market liquidity ensures that traders can enter and exit the market freely without affecting the price of the assets.

Definition:The ease with which a market allows trading without impacting the price of the assets being traded.

Example:Investors prefer stocks with high liquidity, as this allows for easier trading and price stability.

Definition:The ease with which a stock can be bought or sold without causing a significant change in its price.

Example:Improving liability liquidity by raising short-term cash can help a company meet its financial obligations more effectively.

Definition:The ability of a company to easily convert its liabilities into cash without loss of value.

Example:Real estate may have low liquidity compared to stocks, as it takes longer to sell and can involve higher transaction costs.

Definition:The ease with which an asset can be converted into cash without a significant loss in value.

Example:Bank regulators closely monitor liquidity to ensure that banks can meet their short-term obligations without difficulty.

Definition:The capacity of a bank to fund its liquidity needs by quickly converting its assets into cash.