Factoring Company- Glossary > Factoring Terms > Liquidity
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Liquidity is a company’s ability to meet current obligations with cash or other assets that can be quickly converted to cash. Liquidity is one of the most important characteristics of a good market. Liquidity also refers to how easily investors can convert their securities into cash and refers to a corporation's cash position, i.e. how much the value of current assets exceed current liabilities.
Last updated on September 26, 2009 by FACTOR KING, LLC