Investor Terms

Liquidity

Definition

What is Liquidity?

The ease and speed with which an investment can be converted into cash without a major price concession.

Example in practice

A money market fund redeemable within a few business days is generally more liquid than direct property.

Keep learning

The identity and due-diligence checks a financial institution performs before serving an investor.

An assessment of an investor's ability and willingness to accept investment losses and uncertainty.

The expected period before invested money will be needed.

Tax deducted at source from specified income payments before the recipient receives the balance.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.