noun
- the quality of being liquid; the state of flowing freely like water
- the availability of liquid assets; the ability to convert assets into cash quickly
Usage: finance
Examples
- The liquidity of honey decreases as it gets colder.
- Water has perfect liquidity at room temperature.
- The company improved its liquidity by selling unused equipment.
- Banks must maintain adequate liquidity to meet customer demands.
- The stock’s high liquidity made it easy to buy and sell quickly.
- During the crisis, many assets lost their liquidity overnight.