1The availability of liquid assets to a market or company.
- ‘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.
- 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.
- 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.
Words that rhyme with liquidityacidity, acridity, aridity, avidity, cupidity, flaccidity, fluidity, frigidity, humidity, hybridity, insipidity, intrepidity, limpidity, lividity, lucidity, morbidity, placidity, putridity, quiddity, rabidity, rancidity, rapidity, rigidity, solidity, stolidity, stupidity, tepidity, timidity, torpidity, torridity, turgidity, validity, vapidity
For editors and proofreaders
Definition of liquidity in:
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.