Solvency and liquidity
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YouTubeThe Finance Storyteller
Solvency and liquidity
Solvency and liquidity. Two closely related financial terms, dealing with a company’s ability to pay one’s debts, in the short or in the long term. To understand solvency, we must first understand its opposite: insolvency. To understand liquidity, we must first understand its opposite: illiquidity. Simply put: to be broke, or not to be ...
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