What is liquidity in finance, investing and accounting? Let’s look at liquidity for a company, liquidity in markets, and liquidity for investors. The term liquidity is used very often in financial news. There might be worries about the liquidity of ABC Corp. Will it be able to pay its bills and survive? Central banks might be providing more liquidity to financial institutions in times of economic turbulence, so they in turn can provide loans to consumers and businesses. Consumers might decide to hold more liquidity, if they are seeking a safety-net for unplanned expenses.

What is the definition of liquidity? Liquidity is the availability of liquid assets to a company, market or trader/investor.

⏱️TIMESTAMPS⏱️
0:00 What is liquidity
0:42 Liquidity definition
1:55 Liquidity for companies
2:35 Liquidity on the balance sheet
3:54 Market liquidity
4:43 Liquidity for a trader or investor

Philip de Vroe (The Finance Storyteller) aims to make strategy, #finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better #investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!