liquidity Definition
- 1the availability of liquid assets to a market or company
- 2the ability to convert an asset into cash quickly without affecting its market price
- 3the state of being able to flow easily
Using liquidity: Examples
Take a moment to familiarize yourself with how "liquidity" can be used in various situations through the following examples!
Example
The bank's liquidity is at risk due to the high number of withdrawals.
Example
Investors are concerned about the company's liquidity position.
Example
The liquidity of the paint allowed it to spread evenly on the canvas.
liquidity Synonyms and Antonyms
Phrases with liquidity
Example
The company's cash liquidity was low, and it had to borrow money to pay its bills.
the ability of a market to facilitate the buying and selling of assets without causing significant changes in their prices
Example
The lack of market liquidity made it difficult for investors to sell their shares without causing a sharp drop in the stock price.
the ease with which an asset can be converted into cash without affecting its market price
Example
The company's asset liquidity was high, as it had a large number of assets that could be sold quickly if needed.
Summary: liquidity in Brief
The term 'liquidity' [lɪˈkwɪdəti] refers to the availability of liquid assets to a market or company, the ability to convert an asset into cash quickly without affecting its market price, and the state of being able to flow easily. It extends into phrases like 'cash liquidity,' 'market liquidity,' and 'asset liquidity,' denoting the availability of cash or cash equivalents, the ability of a market to facilitate the buying and selling of assets, and the ease with which an asset can be converted into cash.
