Liquidity

Liquidity describes how quickly an asset may be bought or sold on the market without changing its price. Since it will be simpler to locate a buyer (or seller) for that asset when there is a large demand for it, there will also be a high level of liquidity. A company's 'liquidity' is the rate at which it can turn its assets into cash. This comprises non-cash assets like stock, equipment, and money owing by creditors, as well as tangible assets like real estate and commercial or industrial apparatus.