The amount of cash a company has on hand or can generate quickly reveals how healthy the company is financially. High levels of available cash indicate that the business can pay off debt easily when ...

Investing is naturally a risky proposition, and there are specific types of risk to be aware of when deciding where to put your money. Liquidity risk is one of them. Broadly speaking, it refers to how ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

“Water, water everywhere, nor any drop to drink,” the oft-quoted line from Coleridge’s The Rime of the Ancient Mariner does well to describe the dilemma of sailors out far on the ocean. However, much ...

Liquidity refers to the ease with which a security or asset can be converted into cash. A truly liquid asset can be converted into cash without its value dropping significantly. Therefore, the most ...