Definition of liquidity in English:

liquidity

Line breaks: li¦quid|ity
Pronunciation: /lɪˈkwɪdɪti
 
/

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 companies
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: a firm may be unable to pay unless it has spare liquidity
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).

More definitions of liquidity

Definition of liquidity in:

Get more from Oxford Dictionaries

Subscribe to remove ads and access premium resources

Word of the day grammarian
Pronunciation: grəˈme(ə)rēən
noun
a person who studies and writes about grammar