Definition of Liquidity

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TeachMeFinance.com - explain Liquidity



liquidity -- The ease with which an asset can be sold for cash. An asset is highly liquid if it comes in standard units that are traded daily in large amounts by many buyers and sellers. Among the most liquid of assets are U.S. Treasury securities.

another definition...

liquidity -- a measure of the ability of an individual, business, or institution to convert assets to cash without significant loss at a particular point in time.

another definition...

Liquidity -- 1. The availability of liquid funds in an economy.
2. The status or condition of a person or business in terms of its ability to convert its assets into cash and to meet its obligations.
3. The capacity of a market in a particular security or commodity to withstand an unusual amount of buying or selling without affecting the market substantially.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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