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What does liquidity mean?

Looking for the meaning or definition of the word liquidity? Here's what it means.

Noun
  1. (finance) The degree of which something is in high supply and demand, making it easily convertible to cash
  2. (uncountable) The state or property of being liquid.
  3. (economics) An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.
  4. (finance) Availability of cash over short term: ability to service short-term debt.
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Examples
Price your liquidity accurately for each of your client segments and recognize which flows suit your book and which don't, so that you can.
Meanwhile, with liquidity returning to the credit market, the junk bond sector is once again getting geared up to sell paper.
With dollar liquidity flooding the global financial system, foreign holders are accumulating amazing quantities of U.S. securities.
In the process, companies are finding that assets other than inventory and receivables can be mined for liquidity.
As custodian of the almighty dollar, the United States would provide liquidity to the system.
Companies also become vulnerable when they no longer clear the hurdles for initial inclusion, such as market value and trading liquidity.

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