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Sagot :
A company which has sufficient cash, or other current assets convertible into cash in a relatively short period of time, in order to pay currently maturing debts is said to be in liquidity.
Liquidity in the financial markets refers towards how rapidly a commodity may be sold while lowering its price. An asset can be transferred more rapidly (and vice versa) if it is more liquid, and selling it for fair value or the current market price is simpler. More cash reserves trade at a premium and less liquid capital trade at a discount, all else being equal.
In the event of an emergency or other financial setback, you can access liquidity in the form of your emergency reserve account or perhaps the cash you have on hand. Additionally, liquidity is important since it provides you with the capacity to take chances.
Learn more about liquidity here:
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