noun[mass noun] Finance
- 1The availability of liquid assets to a market or company: [as modifier]: the banks closed, causing serious liquidity problems for smaller companiesMore 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: a firm may be unable to pay unless it has spare liquidityMore 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.
early 17th century: from French liquidité or medieval Latin liquiditas, from Latin liquidus (see liquid).
More definitions of liquidityDefinition of liquidity in:
- The US English dictionary