Liquidity

Look up liquidity in Wiktionary, the free dictionary.

Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include:

• Market liquidity, the ease with which an asset can be sold
• Accounting liquidity, the ability to meet cash obligations when due
• Liquid capital, the amount of money that a firm holds
• Liquidity risk, the risk that an asset will have impaired market liquidity