An asset that can be easily bought or sold is considered liquid. Money market funds are perhaps the most liquid asset.
(1) The ability of an investor to find a willing buyer or seller for a particular security in the secondary market. (2) The ability of a corporation or other entity to meet short-term expenses.
Liquidity can refer to two things, one is the extent to which a company's assets are easily convertible into cash, enabling it to pay its debts when they fall due. The other is known as stock liquidity and relates to the average number of a company's shares available to be freely traded on a stock exchange.
This describes how readily your assets can be converted into cash.
A reference to the ease with which trades can be made in the market without causing large swings in price. A 'liquid' market has many buyers and sellers which allows for large volumes of business to be transacted, while an 'illiquid' market can mean that small volumes of business have a tendency to push prices higher or lower quickly.
The degree to which a given market is liquid.
A market is said to be "liquid" when it has a high level of trading activity and open interest.
The ability to meet financial obligations as they come due
Refers to an investor's ability to sell an investment as a means of payment or easily convert it to cash without risk of loss of nominal value.
a market that allows for easy entry and exit of a position due to the large amount of volume
A measure of the level of trading activity. A liquid market has a high level of activity.
Liquidity refers to the amount of transactions in a particular counter, the larger the volume of trading, higher the liquidity.
shortage The lack of assets that can be readily converted to cash.
Money in the bank: i.e., sufficient cash to pay your bills and payroll on time
Ease of converting assets to cash.
How tradeable a security is. A security that is constantly trading in large quantities it is can be bought or sold easily, quickly and with less likelihood of influencing the price.... more on: Liquidity
The ease with which an asset can be sold for cash. An asset is highly liquid if it comes in standard units that are traded daily in large amounts by many buyers and sellers. Among the most liquid of assets are U.S. Treasury securities.
Being able to convert assets into cash easily, quickly and with little or no loss of capital. A liquid market is a market with enough participants to make buying and selling easy.
The ease with which an asset may be converted to cash without loss of value.
Describes the level to which a security can be traded without significantly affecting price.
Liquidity - liquidity. The market on which one can always conclude a deal (in working hours), is called liquid.
Cash and readily convertible (to cash) assets. The liquidity of a business is its ability to meet outstanding debts.
The ability to convert assets into cash quickly and easily.
The amount of a company's assets that can be easily converted into cash.
The capacity of an asset to be converted easily and quickly into cash.
A measure of the ease with which a security can be sold in the secondary market.
The ability of a firm to generate sufficient cash to meet cash needs.
The flexibility of being able to obtain the cash value of investments without incurring significant loss.
Converting an asset (such as shares) to cash (see paragraph 18, Section IV above).
A measure of how easily an investment can be converted into its present value for cash or cash equivalents. Mutual fund shares are very liquid because you can sell them and receive their net asset value in cash or cash equivalents on any day the stock market is open. On the other hand, real estate is not liquid.
refers to how easy it is to trade in a stock. Liquid markets are those where there are a large number of people holding equities and a high volume of shares in the public domain.
The ease by which an asset can be converted into cash without losing its value.
The extent to which assets can be quickly converted to cash without accepting a discount in their value. An asset is perfectly liquid if its sale generates cash equal to, or greater than, the reduction in the value of a farm due to the sale (i.e., the farm's equity is not affected by the sale). Illiquid assets, in contrast, cannot be quickly sold without a producer accepting a discount, reducing the value of the farm by more than the expected sale price.
A measure of the relative ease by which a customer may open and close positions in a particular contract, typified by statistical measures of volume, open interest, bid/ask spreads.
The ease with which investors can convert securities into cash. Also refers to a corporation's cash position – its assets relative to its liabilities.
The ability to buy or sell a large number of units of a financial asset in a short period without significantly affecting the price of the instrument.
Money that can be moved from one place to another. For example, with stock options, if you have the right to purchase stock worth $1 million for the price of just $10,000, but you don’t have $10,000, you lack the liquidity to realize the gain. Most employers have plans that let employees purchase and sell stock in one gesture to eliminate the liquidity problem.
Over 85% of all FX transactions involve seven major currencies (AUD, CAD, CHF, Euro, GBP, JPY and USD). In a 1.5 trillion dollar daily market, traders are usually able to get in or out of currency positions in the major currencies.
This measures whether it is easy to transform the assets of a business into cash. Also, where companies are publicly quoted, on the stock market or on AIM, their shares are said to be liquid if they are readily bought and sold. Smaller, or less fashionable, quoted companies may find their shares lack liquidity.
In credit union terms, that portion of total assets not held in fixed assets and not loaned to members; these are the funds for which the credit union must make investment decisions.
The ease by which an asset can be converted to cash. For example, marketable securities are highly liquid assets, while real estate is not.
The ease with which an asset can be bought or sold quickly with relatively small price changes.
There are two uses for this term - the ease of converting an investment to cash at a reasonable price and a corporation's cash position i.e. current assets relative to current liabilities.
The ability to sell an investment when the owner desires at a price acceptable to the seller. Some investments, like partnerships, have restrictions on sales. The number of buyers and the price which buyers are willing to pay for the units influence.
The ability of a company to meet its current financial obligations and to move into new investment opportunities. Also see Current Ratio.
The ease with which an asset can be exchanged for another asset of equal value.
1. The availability of liquid funds in an economy. 2. The status or condition of a person or business in terms of its ability to convert its assets into cash and to meet its obligations. 3. The capacity of a market in a particular security or commodity to withstand an unusual amount of buying or selling without affecting the market substantially.
The characteristic of being readily convertible into cash.
A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
The degree of a security's marketability; that is, how quickly the security can be sold at a fair price and converted to cash.
A term used at the Stock Exchange to indicate how readily a good can be traded. The more market participants there are, willing to quote prices for a certain good (e.g. a stock), the greater the liquidity, i.e. the greater the chance of finding a buyer and/or seller. Liquidity also describes the ability of a company to meet due payments on time. This is the case, if the company has sufficient (liquid) funds or credit lines for day-to-day business and to meet future payment obligations.
Refers to the company's ability to obtain cash in a hurry. Measures of liquidity are the “current ratio” and “quick ratio”. Liquidity is dependent of the level of current assets in the books of the company.
A measure of a company’s ability to meet its short-term liabilities. The ability to buy or sell an asset quickly without substantially affecting its price adversely.
The ability to buy or sell an asset quickly, or to convert an asset to cash quickly, and in large volume without substantially affecting the price of the asset.
A measure of the ease with which an asset can be converted into money, without significant loss in its value.
The degree to which the assets of the firm can be converted into cash to meet obligations. An insolvent company is said to be illiquid.
The degree to which an asset can be cheaply and quickly turned into money.
The ability of property to be exchanged for cash.
The ease at which a share or other investment can be sold with little expense and minimum delay. An example of a highly liquid asset is a short term bank bill while property is a relatively illiquid investment. For many securities, the degree of liquidity depends on the interest of investors. The term is also used to mean the amount of cash and reserves held by financial institutions, either to fund withdrawals or available for investment in stock markets.
The ability to easily convert an asset (or security) into cash.
Ease with which an investment can be recovered, i.e. ease with which a financial asset can be bought and sold.
the ability to cash in all or part of your mutual fund shares on any business day and receive their current value (which may be more or less than your original cost).
A market in which selling and buying can be accomplished with minimal price change.
The ability to easily turn an investment to cash. An investor should be able to sell a liquid asset quickly with little effect on the price. One example would be a cashable term deposit.
The ability to be able to convert an asset into cash. On the Balance Sheet, Current Assets are listed in order of decreasing or increasing liquidity depending on the accounting conventions being followed.
the relative ability to convert assets to cash or to pay a liability.
The term used to describe the volume of betting transactions on a particular market (or within a betting exchange) and how easy it is to place/lay a bet. Of the betting exchanges Betfair has by far the best liquidity.
Assets that can be readily converted to cash, such as stocks.
The ease with which an asset can be converted to cash. For example: money held in a checking account is a liquid asset; real estate is far less liquid View LEI Lesson(s) that address this term
The ease with which assets or investments can be converted into cash - that is, made "liquid." Liquid investments include savings accounts, Canada Savings Bonds, Treasury bills and money market mutual funds. In contrast, a home is not considered a liquid investment because it cannot be easily transformed into cash.
the ease or frequency with which an investment can be realised
Liquidity refers to how easily an asset can be converted into cash. In regards to the market, liquidity refers to trading volume and how easily a stock can be traded away.
How quickly you can turn your investment into ready cash.
How easily a security can be converted into cash.
refers to the fraction of your assets which are cash, or readily convertible to cash.
From the Fund management point of view, the cash and cash equivalent assets available with a fund to meet expenses and immediate redemption requirements of the investors. It refers to the ability to buy or sell an asset quickly or the ability to convert to cash quickly. From the Investor point of view, it reflects the ease and speed with which an investor can convert his/her unit holdings into cash.
Quality that makes an asset easily convertible into cash with relatively little loss of value in the conversion process. Sometimes used more broadly to encompass credit in hand and promises of credit to meet needs for cash.
The ease and speed with which an asset can be converted to cash; cash is said to be perfectly liquid.
The degree of ease and certainty of value with which a security can be converted into cash.
Market situation in which quick purchase or sale of a security is possible without causing substantial changes in prices.
A measure of how easily an investment can be converted into its present value for cash or cash equivalents. Mutual fund shares are extremely liquid since they can be sold at their net asset value on any day the stock or bond markets are open. Real estate, on the other hand, is very illiquid.
Ratio of the volume of shares traded over the total number of shares in circulation.
A term that refers to the ease or difficulty of converting financial assets or investments into cash.
This is an expression of the degree of ease with which a financial asset may be converted into money.
Liquidity refers to the degree of speed and ease with which an asset can be converted to cash.
Refers to the ease with which an asset may be converted to cash. Can also refer to the level of funds in an economy.
The ability to redeem (sell back) all or a part of your mutual fund shares on any business day and receive the current value (which may be more or less than the original cost). Liquidity, diversification, and professional investment management are three of the major benefits of investing in mutual funds.
the degree to which it is easy to buy or sell a stock in the market
To be liquid. To be in cash. To be able to convert and asset to cash makes it liquid.
The measure of liquid assets. In estate planning it is detrimental to measure the amount of liquid assets available for paying death taxes and expenses.
A company's ability to generate cash in a timely manner in order to meet its obligations, often measured by the quick ratio or the current ratio.
A term used to describe the solvency of a business, and which has special reference to the degree of readiness in which assets can be converted into cash without a loss. Also called cash position. If a firm's current assets cannot be converted into cash to meet current liabilities, the firm is said to be illiquid.
In strict terms, liquidity is the ease with which an asset may be converted into cash. More commonly, liquidity is used to describe the ease of trading shares on an exchange. Liquidity may be high or low depending on the presence of investors in the market. Liquidity can also be encouraged or depressed by the trading and settlement practices imposed by the exchanges themselves.
The ability of a business to generate cash, with little risk of loss of principal value, to meet financial obligations, transactions or investment opportunities.
Refers to having assets that are cash or quickly convertible to cash. See also assets.
A market's capability of accepting a large transaction with minimal, or no, impact on price stability.
The extent to which assets held in other forms can be easily and quickly converted into cash.
The quality of assets that can be easily and quickly converted into cash without any, or significant, loss in value.
The ease with which an investment product can be sold in large volumes, without impacting its price. Hedge funds typically offer quarterly or annual liquidity, meaning that they allow investors to redeem their shares that often.
Liquidity refers to the ability of people to get into and out of investments. A "liquid" stock is a stock with a lot of volume that is easy to buy and sell. A "liquid" investment is an investment which is easy to withdraw. Advice: A liquid investment is one that you can buy and sell easily and quickly. An example of a liquid investment is a bank account. You can go to the bank and take your money out quickly and easily. An example of an illiquid investment would be real estate. If you want to sell your house, you have to put it on the market and could end up waiting over a year to get your money. Or an investment with a non-withdrawable principal. Understanding how liquid you need to be is important. Obviously, if you're in college, you want to be liquid so you can make your tuition payments. If you're retired, you'll want to be liquid to pay your living expenses.
The ability to convert an investment into cash quickly and with little or no loss in value.
The ability to quickly and readily access invested money.
how readily available funds are to satisfy current obligations; how easily something is converted into cash.
Liquidity refers to the ability to convert to cash quickly. Back to the top
Financial liquidity refers to the ability of a company to meet its payment obligations on time. Market liquidity refers to the marketability of a security. As a rule, high market liquidity means a high number of securities in circulation and strong trading activity. From the empirical perspective, shortfalls in liquidity (e.g. in the case of smaller companies) are offset by higher returns.
Investments that can readily be cashed in are considered liquid.
The quality of being easily converted to cash
How easily one's assets can be converted into cash.
The markets ability for accept large transaction with minimal or no impact on price stability.
The volume of business that can be transacted in the market. Highly liquid markets typically have narrow spreads and can accommodate large deal sizes. Illiquid markets have wide spreads, small deal sizes and are often erratic.
The ability to convert an asset to cash quickly, at a price close to its true value.
This refers to how easily a security can be bought or sold in the market. It also refers to how easily investors can convert their securities to cash and reflects a corporation's cash position -- current assets relative to its current liabilities.
This is the ease with which you can access your money. Your financial advisor will recommend that easy-to-get-to short-term money be set aside to cover emergencies and expenses.
The greater the quantity of tradeable securities available and the more widely held the stock, the greater the number of market participants trading in the market, so the greater the liquidity of the market.
Holdings in or the ability to convert assets to cash or its equivalent. The ease with which a person is able to pay maturing obligations.
The ability to convert assets to cash readily.
the ability to turn your investment into cash immediately. Alternatively, the flow of cash into and out of markets, whether domestic or international, which can affect interest rates and corporate profits.
A securities market is said to be liquid when there is sufficient trade to allow buying and selling orders in significant amounts to be carried out quickly without notable effect on the prices of the instruments traded. A relative term rather than a precise one.
How quickly and easily an investment can be turned into cash.
An asset that can by converted easily and quickly into cash.
The ability to sell securities at a reasonable price with relative ease in order to raise cash. Liquidity is a concern for any funds that may be required on short notice, whether for emergencies or for planned purchases.
The ease with which financial assets can be converted to cash without creating a substantial change in price or value.
The easier it is to turn an asset into cash, the more liquid it is. Shares are very liquid as they can be sold any weekday at any brokerage. Works of art and homes are not nearly as liquid because you need to find an interested buyer. Since every buyer needs a seller and vice versa, penny shares, which are very thinly traded, are more illiquid than larger capitalisation shares.
Assets that consist of or are capable of being converted quickly into cash.
The ability of the portfolio assets to be converted into cash quickly and without any price discount. If the assets can be turned into cash quickly and easily, then the investment is said to be liquid.
The volume of business or turnover on an Exchange or any market forum; can be applied to either the paper market or the physical.
Ability to convert an asset to cash without incurring loss.
The ease with which an asset can be spent.
The capability of ready conversion of an asset or investment to cash.
The ability to buy or sell an asset rapidly and in large quantity without substantially affecting the price of the asset. Go to Top
The level of cash and assets readily convertible to cash compared to the demands on the available cash, e.g. to pay bills.
The ability of an investment to be quickly converted into cash.
The different between inflows and outflows of cash in the stock market over a given period of time. The fundamental premise of our liquidity theory is the total market capitalization (price) is a function of liquidity, having nothing to do with value.
The ease with which an asset can be converted into cash. A savings account is highly liquid, whereas tangible property such as a home or car is less liquid... read full article
How quickly and easily an asset can be converted into cash.
Ability of a company's shares or of a class of assets to circulate, or equilibrium between the number of buyers and sellers of such securities.
A function of volume and activity in a market. It is the efficiency and cost effectiveness with which positions can be traded and orders executed. A more liquid market will provide more frequent price quotes at a smaller bid/ask spread.
A market's function of volume and activity. That's the efficiency and cost effectiveness with which positions can be traded and orders executed. The more liquid a maket is, the more frequent price quotes at a smaller bid/ask spread it will provide.
The proportion of cash in a company's assets; also assets that are easily capable of being turned into cash.
Refers to the ability to buy and sell with little or no impact on price stability. The number of players in a market/security has a direct impact on this ability. The FX market is the most liquid market in the world.
This refers to how easily securities can be bought or sold in the market. A security is liquid when there are enough units outstanding for large transactions to occur without a substantial change in price. Liquidity is one of the most important characteristics of a good market. Liquidity also refers to how easily investors can convert their securities into cash and to a corporation's cash position, which is how much the value of the corporation's current assets exceeds current liabilities.
refers to a market which allows quick and easy entry or exit a price close to the last traded price. The ability to liquidate or establish a position quickly is due to a large number of traders willing to buy and sell in a particular commodity market.
The degree of ease with which an asset can be turned into cash. A 'liquid market' is one with many buyers and sellers where dealing is usually easier and shares have a narrow 'Bid- Offer Spread'.
A general term used to indicate how easily transactions can be executed at or near a given price in a given issue or market. It often relates to the number of dollars required to effect a given price change. A liquid stock can absorb more buying (selling) before a significant price change occurs than can an illiquid stock.
ability to buy or sell an ASSET quickly. Refers to the ability to convert to cash quickly.
The ability to sell an asset at a price close to its true value and convert it into cash in a short period of time.
A measure of the ease of trading given to a security or index. It is used within FTSE to screen existing or prospective index constituents. It ensures that investors can buy the stock without problems resulting from an insufficient supply of shares. FTSE liquidity rules differ among index series.
The abffity to convert assets to cash. Short-term investments and cash are the most liquid assets, but they comprise a small portion of the typical insurance company's portfolio. Publicly traded investment-grade bonds may also be considered liquid because they can be readily marketed.
the quality of being readily convertible into cash.
The ability of a market to accept large transactions.
The ability of a firm to meet its obligations in a timely manner.
Term used in various senses, all relating to availability of, access to, or convertibility into cash.
Feature of a financial asset that refers to the ease with which it can be sold in the secondary market; thus, a high level of liquidity is essential to the investor who envisages selling his or her securities prior to maturity. In general terms, the liquidity of a security is high when its outstanding volume is large, when the clearing and settlement system (i.e. the system for executing buy and sell orders) works efficiently, when there are no legal or fiscal impediments to buying and selling it, and when the cost of doing so is low.
The ability of an entity, insurer or insured to convert assets into cash. With reference to an insurer, the intent is to have the funds quickly available to pay claims. When the reference is to the insured, it is used in the underwriting analysis as one of the factors used to determine the financial stability of the account.
Refers to the ready ability to buy and sell shares on a market.
The ability or ease with which a business or an individual can convert their possessions or assets into cash.
Indicates the grade of an asset`s ability to be converted into cash. If there are a high number of buyers and sellers for an asset, it is said to be very liquid.
A broadly traded market where buying and selling can be accomplished with small price changes and bid and offer price spreads are narrow.
This is a way of telling how easy is to purchase or sell a stock. The more shares that trade, the easier it is to buy or sell the stock. Thinly traded stocks like those of small regional banks would be considered harder to buy. If a stock has a thin liquidity, any significant buying or selling could cause huge price swings
The value of assets if they were to be reverted to cash.
the ability to meet obligations and if necessary convert assets in to cash or its equivalent
The degree to which an investment can be bought or sold in a timely and cost-efficient fashion, without affecting the investment's price. Liquidity is mainly characterized by a high level of trading activity for a particular security.
The capability of an asset to be readily converted into cash.
Ability to rapidly buy or sell an asset without substantially affecting the asset’s price. ETFs with limited trading activity are generally not considered liquid because a large buy or sell order can dramatically impact the price and volatility. Liquidity also refers to the relative ease with which an asset can be converted into cash Back
The ease with which an investment can be converted into cash. Shares in a fund are generally considered highly liquid investments because they can be sold on any business day for their then current value (which may be more or less than an investor's original cost).
A firm's ability to meet its short term obligations on a timely basis and to convert assets to cash quickly and without loss in value when needed. aster Lease - A contract which covers currently needed equipment but which also enables the lessee to add other assets in the future, under the same basic terms and conditions, without negoiating a new contract. ational Account - A manufacturer or distributor who sells through a dealer network across the United States. perating Lease - A lease in which the lessor (leasing company) - in determining the lease rate - projects that the equipment will have a necessary market value at lease-end to provide an adequate rate of return.
The ability to convert an investment into cash promptly with a minimum risk of principal.
The proportion of cash or cash equivalents in a company's assets. Sometimes used as a measure of the near term financial health of a company. Also a measure of the volume of shares being traded, which may affect the ability of buyers or sellers to build/unwind large holdings without a substantial impact on the price.
The efficiency of liquidating or establishing a position in the market without disrupting the existing market prices. Liquidity is often taken to refer to the ease with which assets can be traded. A liquid market means a market where it is easy to buy and sell assets.
The ability of a business to meet its financial responsibilities. The degree of readiness with which assets can be converted into cash without loss.
The ease of selling, and the ability to convert investments to cash at anytime.
Ability of a business to meet its short-term financial obligations.
Refers to the relationship between transaction size and price movements. For example, a market is "liquid" if large transactions can occur with only minimal price changes.
Capability to sell an asset or investment.
The ability to supply funds or raise money by selling assets to pay off debts.
The ability to quickly convert property to cash or pay a liability.
The capacity to convert assets to cash quickly, without suffering significant losses.
The ability to convert a security to cash quickly.
the ability to buy or sell an asset with ease and in large volume without moving the price of the asset; tyicallly marked by the presence of many buyers and sellers
The ease with which a financial asset can be exchanged for good without the holder incurring financial loss. A currency like sterling is liquid; a life insurance policy is not.
Refers to the time it takes to convert an asset to cash that is a reflection of its market value. ( See market value )
A measure of negotiability. Liquid securities are often characterised by a large circulating volume, high turnover and a narrow spread between bid and ask prices. See also liquidity premium.
Liquidity is defined as "the ability of an individual or business to quickly convert assets into cash without incurring a considerable loss." There are two kinds of Liquidity: quick and current . Quick liquidity refers to funds, cash, short-term investments, and government bonds - possessions which can immediately be converted into cash in the case of an emergency. Current liquidity refers to current liquidity plus possessions such as real estate which cannot be immediately liquidated, but can be sold and converted into cash eventually. Quick liquidity is a subset of Current Liquidity. Again, the importance of Liquidity has to do with how fast and how much cash an insurance company can get their hands on in case there is a disaster and they need to pay off claims. This reflects the financial stability of a company and thus their rating.
The ability of an entity to pay its debts as they come due.
The degree to which an investment may be quickly sold in exchange for cash. Mutual funds are a liquid investment; at any time, shares may be redeemed. A 30-year savings bond is not liquid. It cannot easily be sold until the 30-year maturity date is reached.
The amount of time required to convert an asset into cash or pay a liability; marketability; closeness to cash; a measure of how quickly an item can be converted to cash; in economics, the desire to hold assets in the form of cash
(economics) (a) A company's ability to meet its obligations at all times. (b) The availability of liquid funds in an economy. (c) The possibility of being able to carry out financial transactions without influencing the market.
The amount of business conducted in a given market or stock. Where possible you always want to trade products that have good liquidity primarily because they are cheaper to trade due to tight bid-offer spreads. An example of a liquid stock would be any FTSE 100 company.
how quickly an asset (any item of value that you own) can be turned into cash. In other words, you don't have to wait until a certain date or pay a penalty to withdraw your money.
Assets that can be converted into cash quickly. An annuity is a long term investment and has very limited liquidity.
The degree of ease with which an investor can gain short-term access to funds held in an investment vehicle.
An entity's cash position, based upon assets that can be readily converted into cash.
The ease with which an asset or security can be converted into cash without loss of principal.
The ease with which an asset can be converted to cash in the marketplace. A large number of buyers and sellers and a high volume of trading activity provide high liquidity.
The ability or ease with which assets can be converted into cash; also the degree to which one can obtain the full cash value of an investment
The ability to quickly convert an investment into cash. A bank account that you can withdraw money from at any given moment without a penalty offers the best liquidity. Other investments that allow quick conversion to cash (or that mature quickly after purchase) are said to also be liquid. Long-term bonds are generally considered less liquid. Real estate investments are perhaps the least liquid investment class.
The ability and availability of assets to be readily converted into cash.
The closeness of an asset to cash. This term also refers to the ability of a company to meet it s liabilities.
Ability to obtain close to the true value of an asset by converting it into cash, quickly.
A market in a financial instrument is said to have liquidity if the market is active with many participants buying and selling. In a liquid market, large transactions can be made without a substantial change in the instrument's price.
1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. 2. The ability to convert an asset to cash quickly.
Extent to which an asset can be converted into cash without significant loss compared to the current value.
Ability to convert assets into cash or cash equivalents without significant loss.
A measure of how quickly a stock can be sold at a fair price and converted to cash. Illiquid stocks are stocks that don't trade in high volume. Thus, having too many shares of a stock that doesn't trade frequently would make for a position that cannot necessarily be sold. See The Fool FAQ: Liquidity.
The ability to convert an investment quickly and easily into cash. Investment funds, especially money market funds are very liquid investments.
the ability to convert assets into cash without significant loss.
There are two separate meanings: At the enterprise level, the ability to meet current liabilities as they fall due; often measures as the ratio of current assets to current liabilities. At the security level, the ability to trade in volume without directly moving the market price; often measured as bid/ask spread and daily turnover.
The ease with which an asset can be converted into cash for an approximation of its true value.
The ease with which something can be converted to cash typically without significant loss of principal.
Volume of transactions. With enough buyers and sellers, a market has continuous bidding, offers, and consummated transactions, and market liquidity is achieved. (See critical mass, network effect.)
The amount an individual or entity holds in cash, checking and savings accounts and other assets quickly convertible to cash without any significant loss.
The cash position of an individual, business or financial institution, measured by cash on hand and securities that quickly convert into cash.
The capacity to sell an asset quickly without significantly affecting the price of that asset.
The ability of an investor to turn an asset into cash quickly.
Liquidity describes the ease with which an asset can be converted into cash immediately. A liquid market is one where there are many buyers and seller and it is easy to sell your investments. For example, the shares on the FTSE 100 index are very liquid while shares on the Alternative Investment Market are not.
The ability to readily convert assets or investments to cash.
The ability to convert an investment asset into cash quickly without loss of value.
The measure of how easily assets can be converted into cash.
Liquid markets are typified by high levels of trading, with underlying stock readily available and buying and selling causing minimal price fluctuations.
The ability to generate cash. To Top
A firm's ability to meet short-term debts.
The ease with which an asset can be sold and converted to the most liquid of assets - cash - without substantial change in price. It is one of the most important characteristics of a good market.
(Liquidité) Feature of a security that relates to the easiness and speed of a market transaction without generating significant changes in the value of that security.
The ease with which an asset can be converted into cash. A liquid market is one where there is lots of demand for what you want to sell and an abundant supply of what you want to buy. The opposite of this is illiquidity. Although most shares you buy are very liquid in that you can sell them very easily, some are less so, particularly those listed on the smaller markets such as the Alternative Investment Market and Ofex.
The ability to buy or sell an asset quickly and in large volume without substantially affecting its price. Shares in blue-chip companies are liquid because they are always in demand and actively traded.
The ability of a market to accept large transaction with minimal to no impact on price stability.
The ease with which an investment can be converted into cash without loss in value.
The ability to access funds or buy/sell an asset easily without significantly affecting the asset's price. Checking and savings accounts offer high liquidity, while a certificate of deposit is less liquid due to the penalties paid if funds are withdrawn early.
The ability to easily convert a security into cash.
How quickly an asset can be converted into freely available cash. For a company, it is the proportion of its assets consisting of money in the bank, accounts receivable, salable inventory, and the like. For an investor, it means how long it would take to sell and collect cash without a resulting drop in market value.
The ability for an asset to be turned into cash for no or minimal loss.
The ability of an asset to be converted into cash quickly.
The ease with which a stock may be bought or sold in volume on the marketplace without causing dramatic price fluctuations. A highly liquid stock is characterized by a large volume of trading and a large pool of interested buyers and sellers.
The ability to produce cash from assets in a short period of time.
A characteristic of a market. In a liquid market, you should be able to buy and sell securities quickly easily without the trades having an undue effect on the share price. This is because there is a high level of trading activity in liquid markets.
Ease with which an item can be traded on the market. Liquid markets are described as deep.
The portion of an investment portfolio that is not fully invested, but is represented by cash holdings. Also, the level of continual buy and sell activity making up the market demand for the shares and indicating the ease with which investors can undertake transactions.
The term used to describe the amount of volume available to buy or sell at a point in time.
The ability of the market in a particular security to absorb a reasonable amount of buying or selling at reasonable price changes. Liquidity is one of the most important characteristics of a good market.
A condition that describes the depth of market orders. A liquid market is able to accept large orders to buy or sell a commodity, with little change to the current price; ease of entry into, and exit from, the market.
An attribute of investments, useful for comparisons between two dissimilar products. Directly-owned real estate is highly illiquid because cash can be removed only through borrowing of equity or sale of the property. In comparison, stocks are highly liquid because they can be bought or sold with minimal cost.
The characteristic of a market that enables investors to buy and sell securities easily.
The ability to buy or sell an asset quickly and in large volume without substantially affecting the asset's price.
The ease with which an asset can be turned into cash. It is a central objective of money market funds.
(1) The ability of a bank or business to meet its current obligations; (2) the quality that makes an asset quickly and readily convertible into cash.
The capacity of an investment to be readily converted into cash. Shares, for example, are relatively liquid because they can be easily sold on the market.
The capability of a market to accommodate supply and demand without unreasonable price changes. Liquidity is a vital requirement for healthy capital markets. Also the proportion of cash or cash equivalents in a company's assets. Sometimes used as a measure of the near term financial health of a company.
is the ease with which one financial claim can be exchanged for another as a result of the willingness of third parties to transact in these assets.
Liquidity is a term used in a market situation to describe the ability of the market to “absorb” large transactions without affecting the rates of the currency being purchased. The Forex Market has high liquidity, meaning that very large amounts of a currency may be bought or sold without the exchange rate raising or lowering due to the demand.
In the context of markets – greater liquidity suggests a more perfect market, where prices are less likely to be constrained by a lack of buyers or suppliers. Greater liquidity promotes better price discovery
ability to sell an investment quickly and at a fair price
The more liquid an asset the easier it is to buy and sell. This can be particularly important when a share price is falling and you need to sell it quickly.
An immediate capacity to meet one's financial commitments. The degree of liquidity depends upon the relationship (i.e. ratio) between a Company's cash assets (plus those assets which can be quickly turned into cash) and the liabilities awaiting payment. (See also 'Assets', liquid Assets', and 'Current Liabilities).
The ease with which an investment can be converted into cash with minimum loss.
The capacity of a market to absorb a reasonable level of selling without significant losses.
The ability to turn an asset into cash. A highly liquid asset is easy to sell because an active market exists that sets prices which are continuously adjusted for supply and demand. An example is a listed stock or mutual fund. A less liquid asset is real estate or a collectible.
The characteristic of an asset that permits it to be sold on short notice with little or no loss in value. Ordinarily, a shorter term to maturity or a lower risk of default will enhance an asset's liquidity.
The measure of how quickly an investment can be turned into cash. A mutual fund generally is considered a very liquid investment, because shares can be redeemed at any time. In contrast, a house is a very illiquid investment.
Liquidity refers to how quick an asset can be converted to cash. A three-month treasury note is probably more liquid than a backhoe, but probably less liquid than money in a checking account. Liquidity translates into a firm or entity paying its bills on time or having the money readily available to take advantage of opportunities as they arise.
The ability to convert an investment into cash with minimum capital loss. A stock, bond or commodity that has a great many units outstanding has liquidity and investors are therefore more inclined to seek out liquid investments so that their trading activity will not influence the market price. Investment funds are thought to be highly liquid as they allow for purchases and redemptionâ€(tm)s on a daily basis.
The ability to easily turn assets into cash. An investor should be able to sell a liquid asset quickly with little effect on the price. Liquidity is a central objective of money market funds.
A company's ability to meet current obligations with cash or other assets that can be quickly converted to cash.
The ability to convert an investment into cash. Alternatively the amount of cash held in a portfolio.
The ability to gain ready access to invested money. Mutual funds are liquid because their shares can be redeemed for current value (which may be more or less than the original cost) on any business day.
The readiness to buy or sell significant quantities of a security at any time.
Assets that you can easily convert to cash.
Refers to the ease with which an investment may be converted to cash at a reasonable price.
the percentage of an enterprise's assets that can be quickly converted into cash.
The property of being instantly convertible into a means of payment with little loss in value.
The part of a portfolio that is held in cash or cash-like securities. Or The ability to buy or sell an asset quickly or to convert to cash quickly.
The level of trading volume in a market.
The ease with which you can redeem an investment for cash or reinvestment. back to the top
Liquidity refers to the ability of a market to absorb buy or sell orders without unusual distortion in pricing.
Cash or cash equivalents that a borrower has accumulated or the ability to readily convert other assets or investments into cash; a.k.a. cash reserves.
The ability and speed with which a security can be converted into cash.
market is liquid when it has a high level of trading activity, allowing buying and selling with minimum price disturbance. Also a market characterized by the ability to buy and sell with relative ease. Antithesis of illiquid.
The easier to convert an asset to cash, the more liquid it is. A savings account is more liquid than a one-year CD, a one-year CD is more liquid than a five-year CD.
The ability to sell an asset and convert it into cash, at a price close to its true value, in a short period of time.
The ability of an insurer to convert its assets into cash to pay claims if necessary.
The ability of a stock to absorb a large amount of buying or selling without substantial price movement. Institutional investors are inclined to seek securities that have liquidity so that their trading activity will not have an effect on the stock's market price. See: Cash Equivalents; Institutional Investor
The ability to convert assets easily and rapidly into cash. Alternatively, short-term funds (cash and equivalents) held to meet immediate cash demands, such as deposit withdrawals or loan demand.
An asset is said to be "liquid" or "have liquidity" when it may be converted into cash quickly with no reduction in price.
Acompany's ability to pay its expenses. The ability to turn an asset into cash (such as selling a piece of machinery).
The availability of cash or ability to obtain it quickly. Also used to determine debt repayment ability
The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. Long Position – Buying a stock or security in hope that the price continues to move upwards. The opposite of a short position or short selling. Momentum Trading – Momentum traders look to find stocks that are moving significantly in one direction on high volume and try to jump on board to ride the momentum train to a desired profit.
A characteristic of a security or commodity market with enough units outstanding to allow large transactions without a substantial change in price.
The ease at which a particular financial instrument or asset can be converted to cash.
Gauges firm's ability to quickly turn assets into cash.
Ease with which a security can be traded on the market.
The ability to respond quickly to an immediate need for cash. This is usually accomplished by holding "liquid assets", which can be quickly sold without a substantial change in their value. Examples would be Canada Savings Bonds, treasury bills and savings accounts.
The ease by which assets can be readily converted into cash.
The ability to convert monkish assets into cash quickly; refers to a firm's cash position and its ability to meet obligations
The ability of assets to be quickly converted to cash without suffering a loss in value of the asset.
The ability of a firm to pay debts as they come due.
A measure of the ease with which an asset can be converted to cash without the loss of principal.
Liquidity refers to the ease with which investments can be converted to cash at their present market value. Additionally, liquidity is a condition of an investment that shows how greatly the investment price is affected by trading. An investment that is highly liquid is composed of enough units (such as shares) that many transactions can take place without greatly affecting the market price. High liquidity is associated with a high number of buyers and sellers trading investments at a high volume.
A cash position based on assets that can be readily converted to cash.
A measure of the ease and frequency with which assets, e.g., CMBS, are actively traded in the secondary market. Large amounts of CMBS issues with similarities in collateral and structure are often traded more steadily in the secondary market, thus increasing the degree of liquidity of the CMBS issues.
The ability to easily raise needed cash.
The degree to which a financial instrument is traded. Highly liquid stocks can experience high trading volume without a dramatic change in price.
Refers to the ease with which an investment can be cashed in without the investor incurring large penalties or accepting a heavily discounted price. An example of a liquid investment is an at call deposit with a bank, building society or credit union, which can be readily withdrawn.
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1. Ability of a company to meet its payment commitments at any time. 2. Availability of liquid assets in an economy. 3. Ability of a market to absorb sudden shifts in supply and demand without excessive price fluctuations.
In the oil market context, this refers to the volume of trading activity and diversity of participants in a particular arena. Greater liquidity allows trades to be executed quickly and easily at a uniform price; a lack of liquidity tends to prevent some interested participants from finding a buyer or seller at a given time. High-volume oil futures markets are the most liquid.
See on: Investopedia Liquidity is the term meaning an opportunity to buy or sell easily the given valuable paper or an active easily. High liquidity means the big activity and the volume of the tenders under the given securities or the financial tool. The market, it is always possible to make a transaction at (in working hours), is liquid.
The ease of converting an asset to cash.
A security is said to be liquid when investors can easily buy and sell the security, as a result of an abundance of buyers and sellers.
Refers to the ability to readily convert an asset or investment to cash by sale at a fair price. Also used to describe the amount of cash held in a portfolio.
The degree to which assets of a company or an investment can easily be sold or converted into cash.