liquidity

Assets easily converted

Liquidity is how easily an asset converts to cash without losing value.

Cash itself is perfectly liquid; a house is not—selling takes time and may require price cuts.

In financial markets, liquidity describes how quickly securities can be bought or sold: The stock has good liquidity.

A company's liquidity is its ability to meet short-term obligations.

During crises, liquidity can vanish as buyers disappear.

financial

cash

Ready spending funds

  • capitalWealth used for investment
  • fundsAvailable financial resources
  • assetsOwned items of value

reserves · solvency · currency · money · credit · working capital · cash flow · marketability · convertibility · treasury

market

trading volume

Amount of shares exchanged

securities · commodities · bonds · equities · buyers · sellers · order book · volatility · capitalization · wholesale

availability

access

Right to enter

disposal · deployment · allocation · provision · usability · fungibility

physical

flow

Unbroken forward movement

moisture · wetness · solution · dissolution · melt · pour · aqueous · hydration

Categories
Opposites
asset convertibility

liquidityilliquidity

Difficulty converting to cash

frozen assets · fixed assets · immobility · real estate · restricted stock

physical state

liquiditysolidity

Firmness of structure

solidness · rigidity · hardness · firmness · frozenness

market function

liquidityilliquidity

Difficulty converting to cash

trading halt · credit crunch

Phrases
Family

illiquidity

Familiarity
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Profile
Used worldwide · Timeless · Abstract · Rated G