Definition from Wiktionary, the free dictionary
- (finance) The degree of which something is in high supply and demand, making it easily convertible to cash
- My Picasso painting is not very liquid, it would take me months to sell it. Gold on the other hand is convertible to cash at any moment, making it a very liquid commodity.
- (uncountable) The state or property of being liquid.
- (economics, countable) An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.
- Some stocks are traded so rarely that they lack liquidity.
- (finance) Availability of cash over short term: ability to service short-term debt.
state of being liquid
property of being able to be easily converted into cash