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liquid

   Also found in: Dictionary/thesaurus, Medical, Acronyms, Idioms, Encyclopedia, Wikipedia, Hutchinson 0.06 sec.
Liquid
Easily traded or converted to cash.
liquid
1. Of, relating to, or being an asset that may be bought or sold in a short period of time with relatively small price changes engendered by the transaction. A U.S. Treasury bill is an example of a very liquid asset. (Many issues of municipal bonds are not very liquid.) Compare illiquid.
2. Of, relating to, or being an investment position in which most of the assets are in money or near money. This kind of position generally earns a relatively low return but allows the investor to take advantage of other investment opportunities.
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