liquidity
n. uncountablen. the ability to turn assets or investments into cash quickly without losing much value. If a business has high liquidity, it has enough cash to pay its bills on time.
n. the ease with which an asset or security can be converted into ready cash without affecting its market price. In a corporate context, it refers to the availability of liquid assets to meet short-term obligations.
The company struggled with liquidity after sales dropped suddenly.
Real estate is generally considered an asset with low liquidity because it can take months to find a buyer and finalize a sale.
During the financial crisis, a sudden lack of market liquidity meant that even high-quality bonds could not be sold at their intrinsic value, forcing many firms into insolvency.
From liquid + -ity, from Latin liquiditas.
Often used in the phrase 'market liquidity' or 'cash liquidity'.