/ˈlɪkwɪdəti/ LIK-wi-DAH-tee

Definitions

1. noun

The state or quality of being liquid; the ability to be easily converted into cash.

“The high liquidity of the company’s assets allowed it to easily pay off its debts.”

2. noun

The readiness with which a market or an investor can convert assets into cash without suffering a significant loss of value.

“The current market conditions have increased the liquidity of the stocks, making them more attractive to investors.”

3. noun

The ease with which a particular market or an asset can be bought or sold in large quantities without affecting its price.

“The high liquidity of the foreign exchange market allows traders to easily buy and sell currencies.”

4. noun

The state of being able to easily meet current and future financial obligations.

“The company’s liquidity improved significantly after the investor injected more funds into the business.”

5. noun

The ability of a financial instrument, such as a stock or a bond, to be easily traded without affecting its price.

“The liquidity of the bond market has increased significantly over the past few years, making it more attractive to investors.”

6. noun

The state or quality of being free from obstacles or restrictions.

“The high liquidity of the market allowed the company to easily expand its operations.”