Published on 30 Aug 2023 on Zacks via Yahoo Finance
Building a portfolio with stocks that have robust liquidity levels will likely work in favor of investors seeking healthy returns, especially in the current volatile market scenario.
Liquidity measures a company’s capability to meet its short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.
However, one should be careful about investing in a stock with high liquidity. High liquidity may also indicate that the company cannot utilize its assets competently.