liquid

adjective
liq·​uid | \ ˈli-kwəd How to pronounce liquid (audio) \

Definition of liquid

 (Entry 1 of 2)

1 : flowing freely like water liquid detergent
2 : having the properties of a liquid : being neither solid nor gaseous
3a : shining and clear large liquid eyes
b : being musical and free of harshness in sound the liquid song of the robin
c : smooth and unconstrained in movement the liquid grace of a ballerina
d : articulated without friction and capable of being prolonged like a vowel a liquid consonant
4a : consisting of or capable of ready conversion into cash liquid assets
b : capable of covering current liabilities (see liability sense 2) quickly with current assets

liquid

noun

Definition of liquid (Entry 2 of 2)

1 : a liquid consonant
2 : a fluid (such as water) that has no independent shape but has a definite volume and does not expand indefinitely and that is only slightly compressible

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Other Words from liquid

Adjective

liquidity \ li-​ˈkwi-​də-​tē How to pronounce liquidity (audio) \ noun
liquidly \ ˈli-​kwəd-​lē How to pronounce liquidly (audio) \ adverb
liquidness noun

Synonyms & Antonyms for liquid

Synonyms: Adjective

flowing, fluent, fluid

Antonyms: Adjective

hard, nonliquid, solid

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Examples of liquid in a Sentence

Adjective

Water and milk are liquid substances. The medicine is available in liquid form. She had large liquid eyes. the liquid notes of a bird the liquid grace of the dancer's movements

Noun

Water and milk are liquids. a bottle of green liquid
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First Known Use of liquid

Adjective

14th century, in the meaning defined at sense 1

Noun

1530, in the meaning defined at sense 1

History and Etymology for liquid

Adjective and Noun

Middle English, from Middle French liquide, from Latin liquidus, from liquēre to be fluid; akin to Latin lixa water, lye, and perhaps to Old Irish fliuch damp

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Statistics for liquid

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Time Traveler for liquid

The first known use of liquid was in the 14th century

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More Definitions for liquid

liquid

adjective

Financial Definition of liquid

What It Is

Liquid refers to the ability to transfer hard assets to cash or the state of being in a position where one has sufficient cash on hand to accommodate any and all necessary financial obligations.

How It Works

Market liquidity is a financial phrase that describes the possibility of converting an asset to cash within a short period of time with minimal transaction costs while not affecting the price integrity of the asset itself.

Accounting liquidity is very similar but references the ability of a business to meet its ongoing obligations by having sufficient cash on hand to meet the demands of its creditors.

Bank liquidity refers to the ability of a bank or banks to meet the demands of its depositors. As the banking system is highly gicd, it does not have on hand all of the cash deposited in its system.  Rather, the bank has its capital invested or on loan elsewhere, which is how the bank generates its income. Called fractional-reserve banking, banks loan out money based on the amount of deposits they have. What they keep in the physical bank to meet the normal demands of depositors is called the reserve, which is only a fraction of what the bank lends out. Maintaining the reserve at optimal levels is referred to as bank liquidity. Without safeguards for liquidity in place, a "bank run" can incur, which any banking system wants to avoid at any cost.

Why It Matters

Any entity which needs to generate and use capital, whether it be a bank, a household, or a business, must have the proper balance between income producing assets and liquid assets such as cash which produce no income. Holding illiquid assets can be a problem when cash is quickly needed.  The consequences can be having to sell valuable assets at a time when the market is not liquid and income or value will be lost.

Source: Investing Answers

liquidity

noun

Financial Definition of liquidity

What It Is

Liquidity is the ability to sell an investment at or near its value.

How It Works

Let’s say you take an old painting from the attic to the local filming of Antiques Roadshow. The expert says your painting is worth $50,000. Surprise!

That’s great news, except that it could take months to find a buyer, and the buyer may only want to pay $35,000 or $40,000. Your painting, while valuable, isn’t very liquid. That is, you can’t convert it to $50,000 very quickly or easily. Houses aren’t very liquid, either. They too can take months to sell, and buyers often don’t pay the sticker price.

Why It Matters

Liquidity is a factor of supply and demand for a security. But it is also affected by the size of the original issue and the time since the original issue -- the smaller the number of securities out there or the longer the securities have been out there, the less liquid they tend to be.

Most people consider the size of the bid/ask spread as indicative of a security's liquidity -- the larger the spread, the less liquid (and thus the riskier) the security is. For example, let’s assume you are watching Company XYZ stock. If the bid price is $50 and the ask price is $51.50, then the bid-ask spread is $1.50. This spread may be high or low depending on what the spread typically is for Company XYZ stock. An increasing spread denotes increasing liquidity risk, and vice versa. In the worst-case scenario, liquidity risk makes it possible that the investor could take a loss if he or she has to sell the investment quickly.

All investments have liquidity risk. This is important to understand, because liquidity risk can compound other problems for investors. For example, if the investor is unable to liquidate his or her position, this may keep him from meeting debt obligations (that is, the liquidity risk increases the investor's credit risk). Buy-and-hold investors face less liquidity risk because they are generally not interested in buying and selling securities quickly. This is particularly true for buy-and-hold bond investors, who are simply waiting for their bonds to mature and are not concerned with interim price movements.

Source: Investing Answers

liquid

adjective

English Language Learners Definition of liquid

 (Entry 1 of 2)

: capable of flowing freely like water : not a solid or a gas
: shining and clear
: clear, smooth, and pleasant in sound

liquid

noun

English Language Learners Definition of liquid (Entry 2 of 2)

: a substance that is able to flow freely

liquid

adjective
liq·​uid | \ ˈli-kwəd How to pronounce liquid (audio) \

Kids Definition of liquid

 (Entry 1 of 2)

1 : flowing freely like water liquid detergent
2 : neither solid nor gaseous
3 : clear and smooth or shining liquid eyes
4 : made up of or easily changed into cash liquid investments

liquid

noun

Kids Definition of liquid (Entry 2 of 2)

: a substance that flows freely like water

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liquid

adjective
liq·​uid | \ ˈlik-wəd How to pronounce liquid (audio) \

Medical Definition of liquid

 (Entry 1 of 2)

1 : flowing freely like water
2 : having the properties of a liquid : being neither solid nor gaseous

liquid

noun

Medical Definition of liquid (Entry 2 of 2)

: a fluid (as water) that has no independent shape but has a definite volume and does not expand indefinitely and that is only slightly compressible

liquid

adjective
liq·​uid

Legal Definition of liquid

1a : consisting of cash or capable of ready conversion into cash liquid assets
b : capable of covering current liabilities out of current assets especially in a rapid manner a liquid insurer
2 : of or relating to a security or commodity with enough shares or units outstanding to hinder significant price variation from large transactions

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