Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include:
*
Market liquidity
In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the ...
, 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
Liquidity risk is a financial risk that for a certain period of time a given financial asset, security or commodity cannot be traded quickly enough in the market without impacting the market price.
Types
Market liquidity – An asset cannot be s ...
, the risk that an asset will have impaired market liquidity
See also
*
Liquid (disambiguation)
*
Liquidation (disambiguation)
{{SIA