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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Liquidity Sentence Examples

  • There's no right way to create liquidity because everyone is different and responds to the outcomes of creating liquidity differently.

  • As liquidity might be looked upon as the ne plus ultra of softness, this is the right place for stating that, while most metals, when heated up to their melting points, pass pretty abruptly from the solid to the liquid state, platinum and iron first assume, and throughout a long range of temperatures retain, a condition of viscous semi-solidity which enables two pieces of them to be "welded" together by pressure into one continuous mass.

  • Your average company is less liquidity constrained than your average employe.

  • liquidity constrained than your average employe.

  • balance sheet information providing details of a businesses assets and liabilities, as well as the liquidity of the business.

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Words near liquidity in the Dictionary