liquidity
liquidity Lexical Profile
liquidity Game Scores & Validity
• noun
The availability of liquid assets to a market or company, or the ease with which an asset can be quickly converted into cash without significantly affecting its market price.
"The central bank injected billions of dollars into the financial system to maintain market liquidity during the crisis."
The physical state or quality of being a liquid; fluidity.
"Heating the heavy syrup increases its liquidity, making it much easier to pour into the molds."
Word Nuance & Usage
In financial contexts, do not confuse 'liquidity' (the ability to quickly convert assets into cash to meet short-term obligations) with 'solvency' (having total assets that exceed total long-term liabilities).
• Rhymes for liquidity
• Nearby Words
Word Origin & Etymology
Borrowed from French 'liquidité' or Medieval Latin 'liquiditas', from Latin 'liquidus' ('flowing, fluid, moist'), from the verb 'liquere' ('to be fluid or clear'). The financial sense relating to readily convertible assets emerged in the early 20th century.