Thermodynamic stability refers to the tendency of a system to remain in a state of equilibrium, where it experiences no net change in energy or composition over time. This concept is crucial for understanding the conditions under which reactions occur and whether they will proceed spontaneously or reach a state of equilibrium. Factors such as Gibbs free energy and equilibrium constants play significant roles in determining the thermodynamic stability of a system, influencing both the direction and extent of chemical reactions.