Liquidity
/ˌlɪkwɪˈdɪti/
Definitions
- (n.) The availability of liquid assets to a market or company.
The company's liquidity improved after securing a short-term loan.
- (n.) The ease with which an asset can be converted into cash without affecting its market price.
Real estate is less favored for liquidity compared to stocks.
Related terms
Commentary
Liquidity often distinguishes between short-term financial health and overall asset value; drafting should clarify context to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.