What is liquidity?

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  • Опубліковано 13 жов 2024

КОМЕНТАРІ • 162

  • @davidagyakwa288
    @davidagyakwa288 3 роки тому +46

    most underrated heaven for beginner traders to learn about finance

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Thank you, David! I have a "sequel" to this one: a solvency and liquidity case study ua-cam.com/video/z4zrQ3saMsI/v-deo.html

    • @vaderporpoise774
      @vaderporpoise774 3 роки тому +1

      @@TheFinanceStoryteller how do you know what's on my assignments

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      @@vaderporpoise774 Pattern recognition! ;-)

    • @paramedvanit2305
      @paramedvanit2305 8 місяців тому

      Agreed 👍👍

  • @craigbradley2881
    @craigbradley2881 3 роки тому +21

    This video is a fantastic explanation. I am a finance novice, and this was easy for me to understand. Thank you!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Happy to help, Craig! Thank you for watching and commenting. Here's the link to the sequel video on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @JL-xd4cn
    @JL-xd4cn 4 роки тому +33

    My 5 year old has understood this in relation to his toys and piggy bank; using the water and ice example! You are a genius mate... Best wishes from London

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому +1

      Start them young! :-) Thanks for the compliments. Greetings back from the Netherlands.

  • @EducatingMyself
    @EducatingMyself 2 роки тому +7

    This was the best video ever on explaining this. Don't know why I couldn't have found this one first, went through so many videos... knowing someone somewhere had to have a SIMPLE video explaining this where people could understand. Thank you for taking the time out to make this video. You have made my investing/trading life much easier.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      That is wonderful to hear. Hope you will find many more useful videos on my channel.

  • @DaBrowns33
    @DaBrowns33 5 років тому +7

    Thank you so much. I
    I am going into my last year of accounting classes and I've never understood assets and liabilities in this context. thank you!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  5 років тому

      Welcome to my channel! :-) And thank you for the feedback. I have made a few videos with "balance sheet reviews" (walking through the balance sheet of well-known companies), I think you might enjoy those as well: ua-cam.com/video/ya7rRZJCLEc/v-deo.html

  • @lolliz100
    @lolliz100 5 років тому +3

    I appreciate how it was explained as varying degrees of how easy or technical cash conversion can occur, Rather than perceiving the term to mean 'either having cash or not having cash'. I understand it better now to be the rate of how technical or easy assets can be converted to cash. Familiar with the term but always wanted a more succinct grasp of it holistic meaning. Thankyou.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  5 років тому +1

      You're welcome! Thanks for the nicely worded feedback. I particularly love the phrase "a more succinct grasp of it holistic meaning". :-) Might use that somewhere in a video in the future. ;-)

  • @shantiaahir6022
    @shantiaahir6022 4 роки тому +10

    Thank you so much for helping. You cleared my doubt in just 6 minute..your method is very easy to understand and interesting. Good luck from India.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      You are most welcome, Shanti! Greetings back from the Netherlands. Please watch the follow-up video as well on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @swapna_learner
    @swapna_learner 2 роки тому +3

    This was one of the best method to understand liquidity from three perspectives

  • @TheFinanceStoryteller
    @TheFinanceStoryteller  5 років тому +3

    Enjoyed this video? Then please subscribe to the channel, and watch the related video the difference between solvency and liquidity (including a case study of the JC Penney bankruptcy): ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @thomasflynn6307
    @thomasflynn6307 2 роки тому +3

    Thanks I finally understand what is meant by liquid water ice and somewhere in between thanks for that

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Happy to help, Thomas!!! I extend the metaphor in my discussion of solvency vs liquidity, aka the sequel: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @sarthaksharma8971
    @sarthaksharma8971 4 роки тому +4

    Thanks A Lot!! Even the Best Examples couldn't have explained it as unequivocally as you have.

  • @itcell9420
    @itcell9420 2 роки тому +3

    Thanks from India.

  • @drajan729
    @drajan729 Рік тому +1

    Excellent explanation. Thank you.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Glad you liked it! 🙂 Have a look at the sequel on solvency vs liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @hacker010010101
    @hacker010010101 5 років тому +17

    really great explanations! good job

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  5 років тому +1

      Thank you very much! It took me a while to put all the pieces together in my mind, but then the actual making of the video went fairly quick.

  • @E23-q3t
    @E23-q3t 2 роки тому +1

    I saw your videos they are simply awesome. Here I like to ask a question and hope with your powerful knowledge you can help to advice correctly and the the world of retail traders can benefit from your input.
    1. FX Liquidity does not matter whether it is from closing a long or short position, it can be taken by MM/banker/Institution to open a long or short position. Is this statement true or false?
    2. Because FX is a zero sum game, if the liquidity zone is worth USD$10.01m it cannot be taken one cent more or less it must be digested exactly with the same amount. Is this statement true or false?

  • @aryashreeshrestha823
    @aryashreeshrestha823 2 роки тому +2

    what a informational video.. thank you , Sir.

  • @rmnthbhagat
    @rmnthbhagat 3 роки тому +2

    Wow.. Superb explanation sir. Thanks a lot for this video.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      You are most welcome, Bhagat! Thank you for watching and commenting. And if you liked this one, then take a look at the follow-up video on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @prpltab
    @prpltab Рік тому +2

    Great explanation!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Thank you!!! Have a look at the sequel on solvency vs liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @azyle2104
    @azyle2104 2 роки тому +2

    EXCELLENT my guy💯

  • @Riffley02
    @Riffley02 2 роки тому +2

    Thank you. I appreciate your explanation.

  • @samrasoli
    @samrasoli 2 місяці тому +1

    useful, thanks

  • @OngTaiKim
    @OngTaiKim 2 роки тому +2

    Thank you for the great explanations.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Glad it was helpful! Check out the sequel as well on solvency vs liquidity ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @paniya255
    @paniya255 2 роки тому +1

    Grate explanation. Go ahead!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Many many thanks! Have a look at the sequel covering solvency vs liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @bekiedude
    @bekiedude 2 роки тому +1

    Ik dacht eerst oh nee, een Nederlander die een Engelse uitleg gaat geven, dit ga ik niet uitkijken hoor. Maar ik was fout, je hebt een superduidelijke uitleg gegeven in heel verstaanbaar NederEngels. :) Thanks! Duimpje omhoog!

  • @vibhavarivasudevan4230
    @vibhavarivasudevan4230 2 роки тому +2

    thank you. you made it so much easier for me.

  • @faaraxcali415
    @faaraxcali415 4 роки тому +2

    Thank you you explained very clear.

  • @SydneyScream
    @SydneyScream 2 роки тому +2

    Yay

  • @bradbishop350
    @bradbishop350 3 роки тому +4

    This just explained everything!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      Thanks, Brad! Take a look at the sequel as well: solvency and liquidity ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @jessiee1055
    @jessiee1055 3 роки тому +2

    The water example is just brilliant! Thank you!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      You're very welcome, Jessie! I continue the water example in my case study on solvency vs liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @YoooPatrick
    @YoooPatrick 4 роки тому +3

    Liked + Subscribe. I love the simplicity and usage of everyday examples.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому +1

      Thank you! Wonderful to hear that. I have recently made a follow-up video on solvency and liquidity, I think you might like that one too: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

    • @YoooPatrick
      @YoooPatrick 4 роки тому +1

      @@TheFinanceStoryteller- Great thanks, I'll check it out. I'm taking my finances more seriously now and trying to save money using different avenues. I've been investing more lately using RH, Acorn, 401k, and my pension funds. Just a random question, if you don't mind the question while doing DD in stocks - what should I be looking for? I'm trying to navigate through your playlist right now, where should I start? would it be the annual reports? income statements, balance sheet and etc?
      Thanks again!

    • @YoooPatrick
      @YoooPatrick 4 роки тому +2

      Thanks for the link, the caste study was very helpful.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому +1

      @@YoooPatrick Hello again, Patrick! Those are great questions, but they have no easy answers.... I think my video on how to read an annual report could help you start your analysis: ua-cam.com/video/Kw-1nopchnA/v-deo.html And my thoughts on how to build an investment portfolio: ua-cam.com/video/K4mWd2zBYVk/v-deo.html Plus a disclosure of my own portfolio (50/50 ETF / individual stocks): ua-cam.com/video/GBLNKbOgQ4w/v-deo.html

  • @pawankushwaha7076
    @pawankushwaha7076 3 роки тому +1

    Tha way you explain things is awesome 👌👌👌

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Thank you very much, Pawan! Great to hear that. Please subscribe, and let me know which other topics you are interested in.

  • @someoneelse.2252
    @someoneelse.2252 2 роки тому +1

    This was great !. Thanks.

  • @asirintisar7663
    @asirintisar7663 5 років тому +3

    Thanks for such great video lesson

  • @vaderporpoise774
    @vaderporpoise774 3 роки тому +2

    great content, and great interactions

  • @MrPramod08
    @MrPramod08 3 роки тому +1

    Nice explanation

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      Thank you, Pramod! Take a look at the sequel as well, a case study on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @ArtofHacksCentral
    @ArtofHacksCentral 4 роки тому +2

    Very easy to understand

  • @mohabothman4620
    @mohabothman4620 3 роки тому +1

    Thank you so much .. you're genius

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Thank you very much for the kind words!!! Here's the link to the sequel on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @diegoariel1745
    @diegoariel1745 2 роки тому +1

    Well explained my friend

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Glad it was helpful! Check out the sequel on liquidity vs solvency as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @Irfanrealest
    @Irfanrealest 4 роки тому +1

    Great explanation Of liquidity🙏

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      Thank you, Irfan! A very important concept to understand in these turbulent times.

  • @chuksjosephclifford-okoroj3204
    @chuksjosephclifford-okoroj3204 29 днів тому +1

    Thank you

  • @venkatkrishna7560
    @venkatkrishna7560 3 роки тому +1

    what a wonderful video.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      So happy to hear that! Thank you very much for watching and commenting! :-)

  • @jasminefremdehake2354
    @jasminefremdehake2354 3 роки тому +1

    Very informed video

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Thank you very much, Jasmine! Check out the sequel on solvency and liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @abdullahm6723
    @abdullahm6723 2 роки тому +1

    this is gold tnx

  • @kamila20004
    @kamila20004 3 роки тому +2

    Great video!

  • @entrepreneurpromotionland9853
    @entrepreneurpromotionland9853 2 роки тому +1

    Well explained!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому +1

      Thank you very much! Happy to hear that. Take a look at the sequel on solvency and liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @alwynfernandes5423
    @alwynfernandes5423 4 роки тому

    Wow...I really have no doubt after seeing this video...thank you...❤️

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      My pleasure, Alwyn! 😊 Check out the sequel as well, where the water vs ice metaphor is extended: solvency and liquidity ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @User42121
    @User42121 3 роки тому

    Great video and great illustration.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Thank you very much, Heino! 🙂 Here's the link to the sequel on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @haidernaqvi92110
    @haidernaqvi92110 3 роки тому +1

    Love from India...thanks

  • @funkdaddy5641
    @funkdaddy5641 3 роки тому +1

    Thank you kind sir

  • @iambangtan2008
    @iambangtan2008 4 роки тому

    This was so super helpful...thank you so much!!!

  • @explorewithadityatamil1240
    @explorewithadityatamil1240 2 роки тому +1

    What is meaning of liquidity injection ? Kindly send reply sir

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      It means getting more liquidity into a company, or the economy in general. If the former (more liquidity into a company), we would be talking in accounting (balance sheet) terms about debit cash credit debt, or debit cash credit equity. If the latter, we would talk about central banks lowering interest rates and/or making it easier for commercial banks to borrow from them (by changing the conditions on e.g. collateral).

  • @KB-ur4nk
    @KB-ur4nk 4 роки тому +1

    great explanation

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      Thank you very much, Kaarthik! So happy to hear that! I think you will enjoy the related video on current ratio as well: ua-cam.com/video/dkiSWO2OYho/v-deo.html

  • @barorome497
    @barorome497 2 роки тому +1

    finally i get it, thanks a lot

  • @renatoancheta7982
    @renatoancheta7982 3 роки тому +1

    thank you so much..
    it help me alot..
    goodluck to me in my trading and god bless you sir in whatever you are trying to do in ure life

  • @Propertyangelsolutions
    @Propertyangelsolutions 4 роки тому +1

    Defensive Internal Ratio - Can you please explain in a video. I appreciate your help and assistance Thank you :-)

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      Thanks for the suggestion! I have never heard of it before, so have no insights to offer on it.... Sorry!

  • @cptseagull
    @cptseagull 4 роки тому +1

    Great video

  • @cinthjairehmumar
    @cinthjairehmumar 4 роки тому +1

    😍😍😍 thank you for the information.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому +1

      My pleasure 😊

    • @cinthjairehmumar
      @cinthjairehmumar 4 роки тому +1

      @@TheFinanceStoryteller actually what i learn today i apply it on my activity via online since i do online class coz of the pandemic and im glad that i answer my questions because of your video.. Thanks a lot.

    • @cinthjairehmumar
      @cinthjairehmumar 4 роки тому +1

      @@TheFinanceStoryteller 😊😊😊

    • @cinthjairehmumar
      @cinthjairehmumar 4 роки тому +1

      @@TheFinanceStoryteller from Philippines 🇵🇭 🇵🇭.. Small UA-camr also.. Thanks a lot ❤

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому +1

      @@cinthjairehmumar Great to hear! Greetings back from the Netherlands. The Philippines is the 3rd largest country in terms of viewership on my channel, after USA and India. :-)

  • @blackwalph
    @blackwalph 3 роки тому +1

    thank you!!

  • @DaStrangeWeasel
    @DaStrangeWeasel 2 роки тому

    So liquidity is how easy it is to sell an investment without losing value. Money, bonds, index funds are highly liquid, but private investments like real estate & rare objects like books and cars are not.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Mostly correct! I would "sharpen" your definition a little to "how easy it is to sell an investment on short notice without losing significant value".

  • @GPatrick137
    @GPatrick137 4 роки тому +1

    really good way of explaining thank you

  • @terryong32
    @terryong32 5 років тому +2

    What does liquidity injection mean?

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  5 років тому +4

      Hi Terry! I think the term "liquidity injection" is mostly used in the context of Central Bank policy, or the relationship of a company with its shareholders/bondholders. It means providing the ability to borrow money (or raise other types of capital) easily.

  • @aTtStev
    @aTtStev 4 роки тому

    Great explanations mate! nice job

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      Great to hear that, Matt! I made a follow-up video covering solvency and liquidity, including a case study on JC Penney: ua-cam.com/video/z4zrQ3saMsI/v-deo.html

  • @H2Ojellyfish
    @H2Ojellyfish 3 роки тому +1

    What does inventories mean?

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Goods that you hold to sell.... finished goods ready to be purchased by customers, or raw materials that you need to produce products, or work-in-progress. Take a look at my video on inventory management to learn more: ua-cam.com/video/DZhHSR4_9B4/v-deo.html

  • @derawaherpisana2307
    @derawaherpisana2307 4 роки тому +1

    nice vid

  • @shrutikalyani7366
    @shrutikalyani7366 4 роки тому

    I like the way you explain

  • @bradseverything2020
    @bradseverything2020 4 роки тому

    What are solidity and liquidity are constant interaction?

    • @bradseverything2020
      @bradseverything2020 4 роки тому

      I mean why not what

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      Hello Brad! Liquidity is the availability of liquid assets to a company, market or trader/investor. If liquidity is lacking, you can't pay your bills (an urgent and important problem for some companies). Solidity (a term I don't use often) seems to be defined as equity as a percentage of total assets. In other words, how much of your total balance sheet is financed by equity (shareholder capital), which basically is your buffer against bankruptcy (making a loss eats into equity; if equity turns to zero then the company is bankrupt). Both liquidity (an indicator of immediate short-term financial health) and solidity (an indicator of longer-term financial health) are important. See also my video "what is equity": ua-cam.com/video/Q1z395u60xU/v-deo.html

    • @JL-xd4cn
      @JL-xd4cn 4 роки тому

      The Finance Storyteller Excellence of explanation

  • @TheBiggestSqueeze
    @TheBiggestSqueeze 3 роки тому +2

    Be like water
    - Bruce Lee

  • @selvasudt
    @selvasudt 5 років тому

    We need video on wacc .

  • @ramakrishna61
    @ramakrishna61 3 роки тому

    Well

  • @guesthookerbyv5915
    @guesthookerbyv5915 2 роки тому +1

    Who come here after losing your life saving on luna

  • @retro9173
    @retro9173 3 роки тому +1

    Jim! what the hell happen?!

  • @samrasoli
    @samrasoli 2 місяці тому +1

    useful, thanks

  • @ChunkyChest
    @ChunkyChest 2 роки тому +1

    Excellent explanation thank you!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Nice to hear that! Have a look at the sequel as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html