Definition, Meaning & Synonyms

liquidez

noun

lee-kwee-dez

Definition

Liquidity refers to how easily an asset can be converted into cash without affecting its market price.

Examples

The liquidity of a stock indicates how easily it can be traded on the market.
Investors prefer assets with high liquidity to ensure quick access to cash when needed.
During financial crises, liquidity may dry up, causing markets to become volatile.

Meaning

In finance, liquidity measures the ability to quickly buy or sell assets. A high level of liquidity indicates that an asset can easily be converted into cash, while a low level of liquidity suggests that it may take more time or may need to be sold at a discount.