Definition of liquidity in English:

liquidity

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

noun

Finance
  • 1The availability of liquid assets to a market or company.
    More 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.
    More 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.
    More 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).

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