Liquidity It is the state of having cash, or possessing assets which can be quickly converted into cash. However, at throwaway prices almost any asset can be turned into cash. To be properly liquid, or to have high liquidity, an asset must be convertible into cash at its fair market price. When it refers to a stock it means that there are enough units of it to make large transactions possible without a substantial support or drop in its price. A Company which has issued a large number of shares has liquid stock in the market.

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