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Why should investors when buying/selling stocks pay attention to "liquidity"?

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jomariflores400l

Answer:

Real estate and equipment, on the other hand, are not liquid assets, but stocks and bonds are. If you want to be able to purchase or sell an investment on short notice, you must take the liquidity of the investment into consideration. In order to satisfy short-term financial commitments, such as incoming invoices, a corporation must maintain a particular level of liquidity.

Explanation:

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