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Finance · Investment & Markets

Liquidity

Noun
US US /lɪˈkwɪdɪti/ GB UK /lɪˈkwɪdɪti/
Finance Investment & Markets intermediate

Definition

The ease with which an asset can be converted to cash without significantly affecting its price.

Visual Reference

Liquidity illustration

Detailed Explanation

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Example

Investors use Liquidity to evaluate securities and make portfolio decisions.

In Practice

Also known as: Marketability, Cash-ability. Closely related to Asset, Cash.

Video Explanation

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Case Study

Liquidity - key concept in Investment & Markets.

Word Usage

Portfolio management; Emergency funds; Market analysis

Finance Investment & Markets

Use Case

Applied in Investment & Markets contexts: Portfolio management; Emergency funds

Also Known As

investment-markets

Synonyms

MarketabilityCash-ability

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