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
Looking to grow your vocabulary? Check out this interactive, curated word list from our team of English language specialists at Vocabulary.com – one of over 17,000 lists we've built to help learners worldwide!
Economics
Interested in learning more words like this one? Our team at Vocabulary.com has got you covered! You can review flashcards, quiz yourself, practice spelling, and more – and it's all completely free to use!
Personal Finance and Financial Literacy - Middle School
Want to remember this word for good? Start your learning journey today with our library of interactive, themed word lists built by the experts at Vocabulary.com – we'll help you make the most of your study time!
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.
Walter, the billionaire founder of Guggenheim Partners, is facing a federal investigation at his firm into private credit lending, and a liquidity crunch.
From The Wall Street Journal ● Aug. 15, 2026
Higher interest rates are coming, global liquidity has peaked and is now weakening.
From MarketWatch ● Aug. 14, 2026
Global liquidity measures the total ease of financing, availability of credit, and volume of cross-border financial flows across world markets.
From MarketWatch ● Aug. 14, 2026
Nasdaq said the acquisition will advance its vision for always-on markets and expand its role in how liquidity is connected and capital is formed.
From The Wall Street Journal ● Aug. 11, 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.
