Definitions for market liquidity
mar·ket liq·uid·i·ty

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1. 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 price at which an asset can be sold, and how quickly it can be sold. In a liquid market, the trade-off is mild: one can sell quickly without having to accept a significantly lower price. In a relatively illiquid market, an asset must be discounted in order to sell quickly.Money, or cash, is the most liquid asset, because it can be "sold" for goods and services instantly with no loss of value. There is no wait for a suitable buyer of the cash. There is no trade-off between speed and value. It can be used immediately to perform economic actions like buying, selling, or paying debt, meeting immediate wants and needs.In an alternative definition, liquidity can mean the amount of cash and cash equivalents. If a business has moderate liquidity, it has a moderate amount of very liquid assets. If a business has sufficient liquidity, it has a sufficient amount of very liquid assets and the ability to meet its payment obligations. An act of exchanging a less liquid asset for a more liquid asset is called liquidation. Often liquidation means selling the less liquid asset for cash. An asset's liquidity can vary due to circumstances. An asset can be easier to sell in one location than another, or at different times of the year. The liquidity of a product can be measured as how often it is bought and sold. Liquidity is defined formally in many accounting regimes and has in recent years been more strictly defined. For instance, the US Federal Reserve applied quantitative liquidity requirements based on Basel III liquidity rules in fiscal 2012. Bank directors are required to know of, and approve, major liquidity risks personally. Other rules require diversifying counterparty risk and portfolio stress testing against extreme scenarios, which tend to identify unusual market liquidity conditions and avoid investments that are particularly vulnerable to sudden liquidity shifts.

How to pronounce market liquidity?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say market liquidity in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of market liquidity in Chaldean Numerology is: 4

2. Pythagorean Numerology

   The numerical value of market liquidity in Pythagorean Numerology is: 5

Examples of market liquidity in a Sentence

1. Brett Pybus:

   Thinning bond market liquidity has helped drive institutional demand for ETFs, the trading of individual bonds is becoming harder, so we're increasingly seeing investors who focus on this space starting to look at ETFs as another tool to complement what they are doing.

2. Sebastian Lund:

   Traders provide market liquidity and play a vital role in establishing dynamic and fair market prices.

3. Peter Cecchini:

   We think there will selling of banks over the course of 2016, with corporate credit secondary market liquidity non-existent and with wage growth absent, bank lending standards are likely to tighten, not loosen.

4. Norihiro Yamaguchi:

   While we did not discount the possibility of a widening of the band to secure a smooth leadership transition, Kuroda appears to have avoided a sharp rise in JGB yields before the end of the fiscal year, the decision to uphold policy rates comes at a cost. The BOJ will be forced to continue its massive JGB purchases to stem speculation of additional YCC tweaks, which will worsen market liquidity.

5. Andy Hill:

   Without secondary market liquidity, primary issuance will be impaired. We're in a fragile state now.

References

1. ^ Wikipedia
   https://en.wikipedia.org/wiki/Market_Liquidity