liquidity
UK: /lɪˈkwɪd.ə.ti/ | US: /lɪˈkwɪd.ə.ti/
n. the state of being liquid; the quality of flowing easily
n. (finance) the ease with which an asset can be converted into cash without affecting its market price
liquid<fluid> + ity<noun suffix>
- liquid: From Latin liquidus ("fluid, flowing"), derived from liquere ("to be fluid").
- ity: A noun-forming suffix from Latin -itas, indicating a state or condition.
Etymology Origin:
The word liquidity traces back to the Latin liquidus, emphasizing the concept of fluidity or ease of movement. Over time, it evolved to describe not just physical fluids but also abstract financial flexibility—how easily assets "flow" into cash. The suffix -ity solidifies (pun intended) the idea into a measurable state or quality.
The liquidity of water allows it to fill any container.
High liquidity in the stock market ensures quick trades.
Central banks monitor the liquidity of financial institutions.
The company struggled due to poor liquidity during the crisis.
Gold is prized for its liquidity in global markets.