liquidity
/lɪkˈwɪdəti/ · liq·ui·di·ty
noun
- The degree of which something is in high supply and demand, making it easily convertible to cash. My Picasso painting is not very liquid, it would take me months to sell it.
- The state or property of being liquid. Water has a high liquidity, allowing it to flow easily.
- 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.
verb
- To make something more easily convertible to cash or more liquid. The company's decision to diversify its investments helped to increase the liquidity of its assets.
Synonyms
fluiditymobilityconvertibilitymarketabilityfungibilitycashabilitymarket liquidityfinancial liquidity
Antonyms
Did you know? The concept of liquidity has been crucial in the development of modern finance, enabling investors to easily convert their assets into cash and facilitating global trade.