liquidity

English

Etymology

From liquid +‎ -ity, from Latin liquiditas. In their financial and economic senses, this and various associated terms all involve portraying assets figuratively as if they were liquids and solids, dissolving the solids with solvents, freezing and thawing, and so on.

Pronunciation

• IPA^(key): /lɪkˈwɪdəti/

• Audio (US):

  (file)

Noun

liquidity (countable and uncountable, plural liquidities)

1. (uncountable) The state or property of being liquid.

   Antonyms: illiquidity, nonliquidity

   Hyponyms: overliquidity, underliquidity

   Coordinate term: semiliquidity

2. (finance) The degree of which something is in high supply and demand, making it easily convertible to cash.

   Antonyms: illiquidity, nonliquidity

   Hyponyms: overliquidity, underliquidity

   Coordinate term: semiliquidity

3. (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.

   Antonyms: illiquidity, nonliquidity

   Hyponyms: overliquidity, underliquidity

   Coordinate term: semiliquidity

   Some stocks are traded so rarely that they lack liquidity.

4. (finance) Availability of cash over short term: ability to service short-term debt.

   Antonyms: illiquidity, nonliquidity

   Hyponyms: overliquidity, underliquidity

   Coordinate term: semiliquidity

   • 2011 August 7, Paul Krugman, “A Self-Fulfilling Euro Crisis? (Wonkish)”, in The New York Times‎^[1]:

     This is often phrased in terms of whether they are facing liquidity or solvency problems; but I think it’s better phrased in terms of the possibility of self-fulfilling crises, a la Obstfeld.

Derived terms

• funding liquidity risk
• liquidity event
• liquidity pool
• liquidity provider
• liquidity smile
• liquidity trap
• nonliquidity
• overliquidity
• semiliquidity
• underliquidity

Related terms

• liquid
• liquidate
• liquidation
• liquidator
• liquidizer
• liquor

Translations

state of being liquid

• Bulgarian: течно състояние n (tečno sǎstojanie)
• Catalan: liquiditat f
• Czech: tekutost f
• Finnish: nestemäisyys, likvidiys
• German: Flüssigsein n
• Greek: ρευστότητα (el) f (refstótita)
• Indonesian: likuiditas (id)
• Irish: leachtacht f
• Polish: płynność (pl) f
• Portuguese: liquidez (pt) f
• Romanian: lichiditate (ro) f
• Spanish: liquidez (es) f
• Swedish: flytande tillstånd n
• Tagalog: pagka-danum

property of being able to be easily converted into cash

• Armenian: իրացվելիություն (hy) (iracʻveliutʻyun)
• Bulgarian: ликви́дност f (likvídnost)
• Catalan: liquiditat f
• Chinese:

  Mandarin: 流動性 / 流动性 (zh) (liúdòngxìng)

• Czech: likvidita (cs) f
• Danish: likviditet c
• Esperanto: likvidebleco
• Finnish: likvidiys
• German: Liquidität (de) f, Verfügbarkeit (de) f
• Greek: ρευστότητα (el) f (refstótita)
• Irish: leachtacht f
• Italian: liquidità (it) f
• Japanese: 流動性 (りゅうどうせい, ryūdōsei)
• Kazakh: өтімділік (ötımdılık)
• Korean: 환금성 (hwan'geumseong)
• Latin: liquiditas f
• Polish: płynność (pl) f
• Russian: ликви́дность (ru) f (likvídnostʹ)
• Swedish: likviditet (sv) c

finance: availability of cash over short term

• Armenian: իրացվելիություն (hy) (iracʻveliutʻyun)
• Bulgarian: ликви́дност f (likvídnost)
• Chinese:

  Mandarin: please add this translation if you can

• Czech: likvidita (cs) f
• Danish: please add this translation if you can
• Finnish: maksuvalmius (fi), likviditeetti (fi)
• German: Zahlungsbereitschaft (de) f
• Greek: ρευστότητα (el) f (refstótita)
• Indonesian: likuiditas (id)
• Irish: leachtacht f
• Italian: liquidità (it) f
• Kazakh: please add this translation if you can
• Polish: płynność (pl) f
• Russian: ликви́дность (ru) f (likvídnostʹ)
• Swedish: likviditet (sv) c

References

• “liquidity”, in Dictionary.com Unabridged, Dictionary.com, LLC, 1995–present.
• “liquidity”, in Cambridge English Dictionary, Cambridge, Cambridgeshire: Cambridge University Press, 1999–present.
• “liquidity”, in Collins English Dictionary, 2011–present.