Liquidity
/lɪˈkwɪdɪti/noun
The ease with which an asset or market can be converted into cash without significantly affecting its price.
Did you know?Liquidity ultimately traces back to Latin *liquidus*, meaning “fluid” or “clear,” from the same root that gave English *liquid* and *liquor*—a reminder that language often treats flow as power.
Etymological Timeline
Proto-Indo-European
PIE
*leikw-
“to leave, drip, flow”
Latin
Latin
liquidus
“fluid, flowing; clear, pure”
Late Latin
Latin
liquiditas
“fluidity, clearness”
14th Century
English
liquidity
“the state of being liquid or fluid”
20th Century
English
liquidity
“financial availability of cash or easily sellable assets”