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Related to liquid: liquid diet, Liquid paraffin


In context of securities, easily traded or converted to cash.
In context of a corporation, the state of having enough cash and cash equivalents to cover short-term obligations.


Easy convertibility into cash. A liquid asset or security can be easily bought or sold with little or no impact on price. Most methods of counting money supply include some highly liquid investments such as certificates of deposit. Liquid assets and investments are highly desirable as they may be sold to allow an investor to enter other investments as they arise. On exchanges, liquid investments usually have low bid-ask spreads. See also: Illiquid, Liquidity preference hypothesis.


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.
References in periodicals archive ?
travelers allowed to board planes with most liquids.
Similarly, a security that is a downgrade candidate will usually be less liquid than one of the same rating that is on the verge of an upgrade.
The dispersion effect comes from the size reduction of large droplets into smaller droplets at the dry liquid mixing stage.
When they subsequently dribbled drops of soap solution onto the dimple where the three bubbles met, antibubbles of nearly identical sizes emerged into the underlying liquid beneath the raft.
Doverphos liquid and solid organo-phosphites used as heat stabilizers for PVC, ABS, and polyolefins.
The fact that the velocity ratio--the ratio of velocity at the centerline to the bulk velocity--increases with increasing viscosity demonstrates that the fiber-liquid suspension behaves more like a viscous liquid as viscosity increases.
Since its discovery in 1906, rubbing to align liquid crystals has been developed into a high art.
The objective of this exception presumably is to prevent corporations from transforming their liquid assets into trade or business assets simply by contributing them to an investment company.
This shrinkage causes the localized failure of the shell, allowing the gravimetric draining of interdendritic liquid into the liquid pool that remains.
To date, the coldest temperature at which liquid water has been observed is -42[degrees]C.
Barrel sections can be equipped with side feeders, venting systems, liquid injection ports, and barrel-valve assemblies.