liquidity
/lɪkˈwɪdəti/
Word Rarity
Rare
Frequency: Zipf frequency 3.45 in modern English
22
Scrabble Score
9
Letters
4
Syllables
7
Unique Chars
Meaning
noun
The degree of which something is in high supply and demand, making it easily convertible to cash.
Countable; Uncountable
noun
An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.
Countable
noun
Availability of cash over short term: ability to service short-term debt.
Countable; Uncountable
Example Sentences
- "Some stocks are traded so rarely that they lack liquidity."
- "This is often phrased in terms of whether they are facing liquidity or solvency problems; but I think it’s better phrased in terms of the possibility of self-fulfilling crises, a la Obstfeld."
Etymology
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.
Origin
- Source language: Latin
Word Breakdown
- Root: liquiditas