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Words in Business News
By Jon Fernquest

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[Thai Economics Library | Archives (for history)]
October 07, 2006

Liquidity

liquidity (noun) -
a. cash or assets quickly convertable into cash possessed by a company
b. when assets can be quickly bought and sold in a market

liquid (adj) -
a. having lots of assets that can be quickly converted into cash
b. when an asset market has a lot of buyers and sellers so an asset can be quickly sold converted into cash

liquidate assets (verb) - sell to get cash
* liquidate assets
* liquidate a company

liquidation (noun) - selling to get cash

liquidator (noun) - person appointed to sell off the assets of a company

liquidate enemies (verb ) - a gangster kills and eliminates an enemy
* The mafia liquidated their cross city rivals one by one.


Example sentences:

* The company had enough liquid assets to sell off and stay in business.

* The board of directors voted to liquidate the company.

* The company went into liquidation.

* The company closed down and began to liquidate its assets.

* The number of company liquidations rose by 5 percent.

* The company has serious liquidity problems and might be forced into bankruptcy.

* During the 1997 financial crisis when a run on banks seemed possible, banks had to maintain high levels of liquidity.

* We feel very comfortable with the bank's liquidity position.

* Liquidity ratios show how well a business is able meet its short-term financial obligations on time.

* If there are too many long-term investments, then the company might face liquidity problems if its short-term creditors wish to cash suddenly.

* Liquidity is the speed at which an asset can reduced to cash.

* During the economic downturn many companies had liquidity problems.

* British government is working to provide the bond market with greater liquidity.

* Professional investors want liquidity so can grab investment opportunities when they see them.

* Portfolio liquidity is the prime concern of our clients.

* To retain liquidity in the market, large blocks of shares will be sold off.

* We need a measure of liquidity, because some assets take a lot longer to sell.

* We have a savings vehicles that will give you the kind of liquidity you're looking for.

* Real estate in this area is notorious for its lack of liquidity.

* Political, and not liquidity risk, is going to be the biggest problem with that investment.

* Higher credit ratings and improved liquidity make these bonds more attractive.

* If we invest in short-term securities, the liquidity of the portfolio will increase.

* This portfolio has plenty of liquidity.

* "A liquidity trap occurs when the economy is stagnant, the nominal interest rate is close or equal to zero, and the monetary authority is unable to stimulate the economy with traditional monetary policy tools." (See Wikipedia)


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