Published on 18 Aug 2023 on Zacks via Yahoo Finance
Add These 4 Top-Performing Liquid Stocks for Strong Returns
The liquidity of a stock is an important parameter that investors should consider while adding stocks to their investment portfolio. Liquidity primarily determines a company’s capability to meet debt obligations by converting assets into liquid cash and equivalents.
These stocks have always been in demand owing to their potential to provide maximum returns. However, one should be alert enough before investing in such stocks. While a high liquidity level may imply that the company is clearing its dues faster than peers, it may also indicate that the company is failing to use its assets efficiently.
Hence, one may consider a company’s efficiency level in addition to its liquidity for identifying prospective winners.