The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

LIQUIDITY Definition & Legal Meaning

Definition & Citations:

1. Ability to meet immediate, short-term obligations with cash, and the ability to liquidate assets quickly enough to do so. 2. In Accounting, this is the ability to meet current liabilities with current assets. 3. In Investing, this is the ability to sell off an investment portfolio with little or no loss in value for cash quickly.

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