A liquidity crisis refers to a financial situation in which a company or individual lacks the liquid assets necessary to meet short-term financial obligations. A liquidity crisis can lead to a wide range of adverse effects including defaults and bankruptcies as cash flow becomes insufficient to meet obligations.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
Her insights simplify complex financial topics into actionable strategies for beginners and seasoned traders alike.