- 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
- An example of liquidity is milk.
- An example of liquidity is a checking account in the bank.
Liquidity is defined as the state of being liquid, or the ability to easily turn assets or investments into cash.
- 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.
- Whole life insurance is a suitable vehicle to provide cash liquidity at the insured's death to settle an estate, to pay estate taxes, to pay for final expenses, or to equalize an estate.
- In essence, you pull out equity from your home with the objective of paying off your current mobile home loan while also investing your excess liquidity on other commitments.
- Such plans are often highly customizable due to high liquidity, so you can expect more control over your policy than with a traditional insurance company.
- There's no right way to create liquidity because everyone is different and responds to the outcomes of creating liquidity differently.
- Cash inflows and outflows used for investing, operations, and financing are tracked to determine a firm's liquidity.