Share this entry

Share this page

liquidity

Syllabification: liq·uid·i·ty
Pronunciation: /liˈkwidədē
 
/

Definition of liquidity in English:

noun

Finance
1The availability of liquid assets to a market or company.
Example sentences
  • ‘We have notions of linkages between liquidity and the bond markets, and between liquidity and different assets,’ says Diamond.
  • Irish businesses are facing the most serious liquidity squeeze in years.
  • This created a situation of low liquidity in the market and, according to him, it is easier to influence the market in times of low volume.
1.1Liquid assets; cash.
Example sentences
  • Having ample cash is great for liquidity, but money sitting around as cash is not working for you and thus is not very advantageous.
  • Purchasing securities from a primary dealer and paying for them with cash adds liquidity to the banking system.
  • Potentially, an economy can stagnate until the crisis eases by sufficient liquidity coming back into general circulation.
1.2A high volume of activity in a market.
Example sentences
  • The bank is more concerned with liquidity than profitability, so that its central bank clients can withdraw funds without publicity at a moment's notice.
  • Allowing them access to the exchange using authorised brokers would increase transparency and boost liquidity, Shen said.
  • The territory's top securities regulator said liquidity, transaction costs and managerial skills in Hong Kong remained among the best in Asia.

Origin

early 17th century: from French liquidité or medieval Latin liquiditas, from Latin liquidus (see liquid).

Definition of liquidity in:

Share this entry

Share this page

 

What do you find interesting about this word or phrase?

Get more from Oxford Dictionaries

Subscribe to remove adverts and access premium resources

Word of the day ingratiate
Pronunciation: ɪnˈɡreɪʃɪeɪt
verb
bring oneself into favour with someone through flattery…