In contrast, ownership of a company by a sole proprietor or partnership carries unlimited personal legal responsibility for debts incurred by the business. The process of converting property and securities into cash. When a company is dissolved or closed down, cash remaining after sale of its assets and payment of all indebtedness is distributed to the shareholders, beginning with the preferred shareholders and ending with the common shareholders. This refers to how easily securities can be bought or sold in the market. A security is liquid when there are enough units outstanding to allow large transactions without a substantial change in price.
Liquidity is one of the most important characteristics of a good market.
Liquidity also refers to how easily investors can convert their securities into cash and refers to a corporation's cash position, i.e. how much the value of current assets exceed current liabilities. The stock of a company which is traded on a stock exchange. Companies pay fees to the exchange to be listed and must abide by the rules and regulations set out by the exchange to maintain listing privileges. It provides basic information on the company, its business, management, assets, capitalization and financial status. A charge added to mutual funds which covers sales commissions and all other costs of distribution.