Definition of Liquidity:
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.
Investing: The ability to quickly convert an investment portfolio to cash with little or no loss in value.
Accounting: The ability of current assets to meet current liabilities.
The availability of liquid assets to a market or company.
How to use Liquidity in a sentence?
- Being able to come up with liquidity quickly can help you make a spur of the moment profitable buy at the right time.
- Being able to quickly access your liquidity can be the difference between making a profitable deal and missing out on it.
- 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.
- The banks closed, causing serious liquidity problems for smaller companies.
Meaning of Liquidity & Liquidity Definition