BusinessAugust 16, 2026

liquidity

li-KWID-ih-tee

Definition

The degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value without significantly affecting its price.

Etymology

Derived from the Latin 'liquidus' meaning 'fluid' or 'clear,' the term entered Middle English to describe physical fluids before being adopted into economics to describe the fluid movement of capital.

In the news

In this article, liquidity refers to the ease with which market participants can trade stocks, highlighting investors' concern that new margin rules might disrupt this flow of trading activity.

Price fall in large-cap drives stocks down

Read the full article ↗

Bangladesh Sangbad Sangstha (BSS)

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