liquidity

Phonetic: /lɪˈkwɪdɪti/

Part of Speech: noun

Category: To be determined

An asset is considered more ‘liquid’ if it can easily be converted into cash, and therefore, ‘liquidity’ refers to the availability of assets to a company or market. Conversely, the harder it is to turn an asset into cash, the more illiquid the asset. For example, stocks are considered relatively liquid assets, as they can be easily converted to cash, while real estate is considered an illiquid asset. The liquidity of an asset affects its risk potential and market price.

Definition source: Education DAO - mapachurro

Sample sentence

N/A

Additional definitions

The ability to sell or buy any given asset without causing significant fluctuations in the market price for that asset.

Source

Extended definition

No extended definition. ...yet

This word came from... the ether

Date first recorded: 2025-01-31

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