liquidity.

1. The ability to obtain cash or sell assets promptly without a substantial loss in value.

2. The ability of a substance to flow freely as a liquid.

Use it for

Words that belong together

• market liquidity
• liquidity shortage

On the page

A profitable business can still face a liquidity shortage when its payments fall due first.

Market liquidity deteriorated as willing buyers withdrew from trading.

Usage notes

Primary category: economics / business / social science. Forms: Usually uncountable. Legacy lexical fields mirror sense 1 only. Use numbered sense fields for all meanings. Established modern English lexical item. No separate regional spelling or grammatical inflection entry. Writing functions: financial analysis, risk evaluation, comparison, explanation. Disciplines: economics, finance, business. Commonness: moderately common.