Liquidity: meaning, definitions and examples

Used in financial and investment contexts to describe how quickly an asset can be converted into cash without affecting its price.

• The company's liquidity has improved this quarter.
• Investors are concerned about the liquidity of the stock.

Generally used to describe the smoothness and readiness of movement or changes, not strictly in financial contexts. Can refer to various systems or situations, like markets, organizations, or conversations.

• The fluidity of the conversation made the meeting very productive.
• The fluidity of the stock market can be unpredictable.

Describes the simplicity and speed with which an asset or currency can be converted into another form, often used in technical or explanatory contexts.

• The ease of conversion of stocks into cash can impact an investor's decision.
• Foreign currencies are chosen based on their ease of conversion into U.S. dollars.

Used to describe how easily an asset or product can be sold in a market. It often applies to both financial assets and consumer products.

• The marketability of artwork can be quite subjective.
• Property in prime locations usually has high marketability.