Question
Is a company with a current ratio below 1 illiquid? Definition: Illiquid- Illiquid refers to the state of a stock, bond, or other assets that
Is a company with a current ratio below 1 illiquid?
Definition:
Illiquid- Illiquid refers to the state of a stock, bond, or other assets that cannot easily and readily be sold or exchanged for cash without a substantial loss in value. Illiquid assets may be hard to sell quickly because there is low trading activity or interest in the issue, indicated by a lack of ready and willing investors or speculators to purchase or sell the asset. As a result, illiquid assets tend to have lower trading volume, widerbid-ask spreads,and greater price volatility.
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