Definition of Liquidity:

  1. A measure of the extent to which a person or organization has cash to meet immediate and short-term obligations, or assets that can be quickly converted to do this.

  2. Investing: The ability to quickly convert an investment portfolio to cash with little or no loss in value.

  3. Accounting: The ability of current assets to meet current liabilities.

  4. The availability of liquid assets to a market or company.

How to use Liquidity in a sentence?

  1. Being able to come up with liquidity quickly can help you make a spur of the moment profitable buy at the right time.
  2. Being able to quickly access your liquidity can be the difference between making a profitable deal and missing out on it.
  3. The bosses were quick to take advantage of the firms current liquidity and spent almost all of it immediately redecorating the executive suites, gym, conference areas and dining room.
  4. The banks closed, causing serious liquidity problems for smaller companies.

Meaning of Liquidity & Liquidity Definition