Liquidity

Pronunciation: /lɪˈkwɪdətiː/

Liquidity (noun)

  1. How easily a person or business can get money to pay bills when they are due.
  2. How quickly an asset can be sold for cash without a big loss in value.
  3. The ability of a market to trade assets smoothly, with buyers and sellers available.

Examples

  • The company improved liquidity by collecting payments faster.
  • Liquidity helps a business pay bills on time.