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What Is Liquidity?

By Sam Swenson, CFA, CPA – Updated Feb 22, 2025 at 9:30AM

Key Points

  • High trading volume and tight bid-ask spreads indicate a stock's high market liquidity.
  • Accounting liquidity measures a company's ability to cover short-term obligations.
  • Liquid stocks like Apple and Tesla allow quick, stable transaction execution.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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