liquidity
Americannoun
-
the possession of sufficient liquid assets to discharge current liabilities
-
the state or quality of being liquid
Etymology
Origin of liquidity
From the Latin word liquiditās, dating back to 1610–20. See liquid, -ity
Explanation
Liquidity refers to a state where something is in liquid form, like water. It can also refer to having cash or access to cash. Liquidity means things are flowing. Although liquidity refers to…surprise! being a liquid, it’s usually used in a financial sense. Financially, liquidity refers to having access to cash or things you can sell and turn into cash. In other words, you have good cash flow. Liquidity can also apply to any situation that is marked by fluidity or runniness. You hope your new swimming pool is in a state of liquidity, and that you have enough financial liquidity to pay for it!
Vocabulary lists containing liquidity
Personal Finance and Financial Literacy - High School
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Economics
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Personal Finance and Financial Literacy - Middle School
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Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
Liquidity from a swap could help defend the peg to the dollar.
From The Wall Street Journal • May 14, 2026
Liquidity dried up first where positioning was most crowded.
From MarketWatch • Jan. 30, 2026
Appeared in the January 3, 2026, print edition as 'IPOs in 2025 Weren’t Enough to End The Venture Capital Liquidity Crisis'.
From The Wall Street Journal • Dec. 30, 2025
Liquidity conditions are poised to get better, not worse.
From Barron's • Nov. 11, 2025
Return Liquidity or Liquidation Large parts of the world today suffer from a severe liquidity crisis.
From After the Rain : how the West lost the East by Vaknin, Samuel
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
