Definition of liquidity in English:

liquidity

noun

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

    • ‘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.’
    • ‘Irish businesses are facing the most serious liquidity squeeze in years.’
    • ‘In the long term we should never again have currency crisis interest rates, nor liquidity shortages of any manifest kind.’
    • ‘‘We have notions of linkages between liquidity and the bond markets, and between liquidity and different assets,’ says Diamond.’
    • ‘Companies also become vulnerable when they no longer clear the hurdles for initial inclusion, such as market value and trading liquidity.’
    1. 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.’
      • ‘All investors should have cash holdings, if only to furnish liquidity for short-term requirements or emergencies.’
      • ‘The same mechanism can be extended for dollar liquidity.’
      • ‘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.’
    2. 1.2A high volume of activity in a market.
      • ‘Because of low liquidity, the turnover of B shares remained static and most B shares were underpriced for many years.’
      • ‘The territory's top securities regulator said liquidity, transaction costs and managerial skills in Hong Kong remained among the best in Asia.’
      • ‘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.’
      • ‘Unfortunately, they increased the price of imports at a time of low liquidity, and contributed materially to a slump in world trade.’
      • ‘Allowing them access to the exchange using authorised brokers would increase transparency and boost liquidity, Shen said.’

Origin

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

Pronunciation:

liquidity

/liˈkwidədē/