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.
Goldman’s risk appetite indicator, or RAI, measures investor risk appetite using high-frequency data across five main categories: fixed income, equity, liquidity, commodities and credit.
From MarketWatch • May 15, 2026
Proceeds from Xanadu’s merger with a blank-check company, including a $275 million private investment, accounted for the significant increase in liquidity.
From Barron's • May 14, 2026
Noninterest income is expected to stay firm, supported by transactional liquidity, wealth management, market trading and treasury-related activities, she adds.
From The Wall Street Journal • May 14, 2026
It may also expand JBS’s eligibility for inclusion in more stock indices in the U.S., which the company said could help expand its investor base, increase liquidity and improve its global visibility.
From The Wall Street Journal • May 12, 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
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.
