Answer Posted / aditya ratnam
1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. Assets that can by easily bought or sold, are known as liquid assets.
2. The ability to convert an asset to cash quickly. Also known as "marketability".
There is no specific liquidity formula, however liquidity is often calculated by using liquidity ratios.
Regards.
Is This Answer Correct ? | 10 Yes | 0 No |
Post New Answer View All Answers
What are the different risk management techniques used in trading?
What significant trends do you see in the future for our industry?
What Is A Revenue Expenditure?
What is the shortcut to duplicate a voucher and to add a voucher in Tally ERP 9?
What Is Atm Banking (automated Teller Machine)?
What Are The Different Types Of Banking Software Applications Are Available In The Industry?
Define Mortgage Debentures?
What is 'mobile banking'?
What is the Full form of IMPS and what are the features and benefits?
Why do you think you will succeed in this job?
What are Preference Shares?
How do we calculate GNP and GDP?
How will you compensate your lack of experience?
what is direct investment and foriegn direct investment?
What are the contents in lease agreement?