Word of the Day ·

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liquidity

/lɪkˈwɪdəti/

noun

What it means

  1. uncountableThe state or property of being liquid.

    Antonyms: illiquidity, nonliquidity

  2. countableuncountablebusinessThe degree of which something is in high supply and demand, making it easily convertible to cash.

    Antonyms: illiquidity, nonliquidity

  3. countableeconomicsAn asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.

    Some stocks are traded so rarely that they lack liquidity.

    Antonyms: illiquidity, nonliquidity

In a sentence

Some stocks are traded so rarely that they lack liquidity.

Where it comes from

  1. Latinliquiditas
  2. Englishliquidity

From liquid + -ity, from Latin liquiditas. In their financial and economic senses, this and various associated terms all involve portraying assets figuratively as if they were liquids and solids, dissolving the solids with solvents, freezing and thawing, and so on.

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