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liquidity

 - 6 dictionary results

li⋅quid⋅i⋅ty

  [li-kwid-i-tee]
Use liquidity in a Sentence
–noun
1. a liquid state or quality.
2. the ability or ease with which assets can be converted into cash.
Origin:
1610–20; < L liquiditās. See liquid, -ity
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
Cite This Source Link To liquidity
li·quid·i·ty   (lĭ-kwĭd'ĭ-tē)   
n.  

  1. The state of being liquid.

  2. The quality of being readily convertible into cash: an investment with high liquidity.

  3. 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.

The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Cultural Dictionary

liquidity [(li-kwid-uh-tee)]

The condition of having enough money on hand to meet financial obligations without having to sell fixed assets, such as machinery or equipment.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
Cite This Source
Financial Dictionary

Liquidity

1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity.

2. The ability to convert an asset to cash quickly.

Investopedia Commentary

1. It is safer to invest in liquid assets than illiquid ones because it is easier for you to get your money out of the investment.

2. Examples of assets that are easily converted into cash include blue chip and money market securities. Also known as "marketability".

Related Links

Money Market Tutorial
Getting To Know The Money Market

See also: Asset, Blue Chip, Cash, Illiquid, Liquidity Cushion, Liquidity Risk, Money Market, Short Squeeze, Volume

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Financial Dictionary

liquidity

A large position in cash or in assets that are easily convertible to cash. High liquidity produces flexibility for a firm or an investor in a low-risk position, but it also tends to decrease profitability.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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Legal Dictionary

Main Entry: liq·uid·i·ty
Pronunciation: li-'kwi-d&-tE
Function: noun
: the quality or state of being liquid
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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