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.
He talked about high yields and liquidity within 90 to 180 days for investors who want to exit.
From The Wall Street Journal ● Oct. 22, 2026
Zuckerberg is allowed to sell 20% of his new Class C shares, giving him liquidity to, among other things, pay a potential Proposition 40 bill.
From MarketWatch ● Oct. 22, 2026
“CCC spreads have widened like this in every major liquidity event that we’ve had in the last 30 years,” he said.
From MarketWatch ● Oct. 19, 2026
The firm argued that bypassing traditional exchange rules could fragment liquidity, or scatter trading activity across different platforms, and undermine investor protections.
From The Wall Street Journal ● Oct. 16, 2026
“Bear was able to show us liquidity in the CDOs that I couldn’t understand,” said Ben.
From "The Big Short" by Michael Lewis
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Get a wordDefinitions 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.
