Liquidity- an investment, which criterion relates to how the investment will affect your tax situation
When a financial asset or security may be quickly and easily converted into cash without depreciating in value, this is referred to as having liquidity. Cash alone is the most liquid of all the assets.
The term "liquidity" describes how quickly and easily a security or asset can be turned into cash without depreciating in value.
The most liquid asset is cash, while the least liquid asset is tangible goods. Market liquidity and accounting liquidity are the two primary types of liquidity.
The most popular methods for assessing liquidity are current, quick, and cash ratios.
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