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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
Although the evidence is mixed, some prior research has shown that liquidity is associated with repurchase plan adoption.
That rating was assigned in 1999, when we were in the red on our short-term liquidity.
With dollar liquidity flooding the global financial system, foreign holders are accumulating amazing quantities of U.S. securities.
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.
Central banks last night said that they were ready to offer liquidity when markets open today.
As custodian of the almighty dollar, the United States would provide liquidity to the system.

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