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What is liquidity and why is it important?

What is liquidity and why is it important?​

Liquidity is the ability to have enough money or current assets when needed. Another definition of liquidity is the ability to have money to pay when you have to pay. but may have different meanings depending on the context of the speaker.

Junk Bond Definition

Junk Bond Definition​

A bond or Debenture will payoff the investor a return in the form of interest. But there is another type of bond, which is the junk bond, which pays extraordinarily high interest rates because of its high risk of default.