liquidity[li kwid′i tē]
- Liquidity is defined as the state of being liquid, or the ability to easily turn assets or investments into cash.
- An example of liquidity is milk.
- An example of liquidity is a checking account in the bank.
- the quality or state of being liquid
- the ability of a business to meet obligations without disposing of its fixed assets
- the ability of a market to absorb buying and selling without producing undue price fluctuations
- The state of being liquid.
- The quality of being readily convertible into cash: an investment with high liquidity.
- Available cash or the capacity to obtain it on demand: a bank that is increasing its liquidity by shortening the average term of its loans.
(countable and uncountable, plural liquidities)
- (uncountable) The state or property of being liquid.
- (economics, countable) An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.
- Some stocks are traded so rarely that they lack liquidity.
- (finance) Availability of cash over short term: ability to service short-term debt.