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liquiditythe availability of liquid assets to a market or company; the quality of being readily convertible into cash

Part of speech: NOUN

Definition: the availability of liquid assets to a market or company; the quality of being readily convertible into cash

Pronunciation (IPA): /lɪˈkwɪdəti/

Example Sentences

  • The startup's lack of liquidity meant they couldn't even afford pizza for the office party.
  • Banks maintain adequate liquidity to meet customer withdrawal demands.
  • Real estate has low liquidity compared to stocks - you can't sell a house as quickly as clicking 'sell' on your phone.

liquidity

NOUN

[/lɪˈkwɪdəti/]

the availability of liquid assets to a market or company; the quality of being readily convertible into cash

The shop owner sold inventory fast to boost liquidity before rent was due.
💡 Concept

The shop owner sold inventory fast to boost liquidity before rent was due.

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🎤Pronunciation

🇺🇸 US/lɪˈkwɪdəti/
🇬🇧 UK/lɪˈkwɪdɪti/

🌳Etymology

Rootliquid
Suffix--ity

Origin

Derived from Latin 'liquidus' (liquid, fluid), originally referring to the physical state of liquids. The term evolved metaphorically in modern finance to denote the ease with which an asset can be converted to cash without significant loss of value.

Breakdown

liquidus (liquid, flowing) + -ity (state, quality, condition). The suffix -ity transforms the adjective into an abstract noun expressing the quality or state of being liquid or readily convertible to cash.

🎵Rhyme

validityidityrigidity
validity
idity
rigidity

🔗Collocations

market liquidity
high liquidity
liquidity crisis
improve liquidity
liquidity ratio
cash liquidity

📝Examples

😄 Fun example

The startup's lack of liquidity meant they couldn't even afford pizza for the office party.

Banks maintain adequate liquidity to meet customer withdrawal demands.

😄 Fun example

Real estate has low liquidity compared to stocks - you can't sell a house as quickly as clicking 'sell' on your phone.

The central bank injected liquidity into the market to stabilize the economy.

📚Related Words

Synonyms

fluiditycash flowconvertibilitysolvency

Antonyms

illiquidityrigidityinsolvency

Related

liquidassetcashconvertiblefluid

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