Liquidity meaning

lĭ-kwĭd'ĭ-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.

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The quality of being readily convertible into cash.

An investment with high liquidity.

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The quality or state of being liquid.
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(uncountable) The state or property of being liquid.
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(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.

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(finance) Availability of cash over short term: ability to service short-term debt.
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The state of being liquid.
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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.

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