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liquidity

liquidity

34 6.7
How quickly you can change something into cash to pay bills
  • noun
  • /lɪkˈwɪdəti/
  • Specialized
translation icon : liquidez
  • Investors often assess a firm's liquidity to ensure it can meet immediate cash obligations.
  • market liquidity
  • liquidity crisis
  • international liquidity

Let's say you are providing liquidity to a decentralized exchange.

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Examples

  • The provision of liquidity by the Fed is necessary.

  • The challenge is to find ways to increase liquidity at a reasonable cost.

    Academic text (1999)
  • But people need liquidity now at certain times, right?

  • So it is a network valued because of its liquidity and network effects.

  • So you need more liquidity and market depth.

  • Jane Street's core business is providing liquidity on the world's electronic markets.

    Academic text (2011)
  • The amount of liquidity that we're requiring large banking organizations to hold is greatly increased.

  • That, yes, Morgan has suffered some losses, but our liquidity is strong and there's no cause for concern.

  • Well, I was reading the Wall Street Journal and came across this medical supply company that was looking to expand but didn't have the liquidity.

  • The SEC has previously shown concern about liquidity and the risk of price manipulation on Bitcoin exchanges.

Synonyms

liq
vsliquidity
  • Jargon
9.9

How much cash or assets you can get quickly

is the full term used in formal or technical contexts rather than an abbreviation

Antonyms

illiquidity
  • Specialized
1 8.9

A lack of cash because owners cannot sell assets quickly without losing much value

Compounds

liquidity crisis
  • Specialized
1 7.3

A time when people, banks, and businesses cannot get cash or loans quickly

How Liquid

cash
1.0
liquidity
  • Specialized
34 6.7
stocks
  • Specialized
1 8.6
corporate bond
  • Specialized
4 3.7
real estate
490 2.8

Surface Forms

liquidity singular
liquidities plural

Morphology

liquidity = liquid (semi-transparent) = liquid + ity

Formed by nominalizing 'liquid', but the financial meaning ('easily converted to cash') is a metaphorical extension from the physical sense and not fully derivable from the adjective alone.

Etymology

Liquidity comes from liquid ('flowing', 'like water'), and in money talk it gives the image of money that 'flows' easily. So liquidity means how quickly something can be turned into cash when you need it.