Definitions (3)
Related Terms
1. A measure of the extent to which a person or organization has cash to meet immediate and short-term obligations, or assets that can be quickly converted to do this.
2. Accounting: The ability of current assets to meet current liabilities.
3. Investing: The ability to quickly convert an investment portfolio to cash with little or no loss in value.

Use 'liquidity' in a Sentence

Being able to come up with liquidity quickly can help you make a spur of the moment profitable buy at the right time.
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The bosses were quick to take advantage of the firm's current liquidity and spent almost all of it immediately redecorating the executive suites, gym, conference areas and dining room.
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Being able to quickly access your liquidity can be the difference between making a profitable deal and missing out on it.
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