Liquidity: Difference between revisions

Liquidity (view source)

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 {{d|Liquidity|/lɪˈkwɪdɪti/|n|}}
-''Hence, ''[[liquid]]:'' the state of having ~;'' [[Liquidate]]:'' to make use of ones ~ (i.e. to sell); ''[[Illiquidity]]: the opposite of ~''.
+''Hence, '''''[[liquid]]''':'' the state of having ~;'' '''[[liquidate]]''':'' to make use of one’s ~ (i.e. to sell); '''''[[Illiquidity]]''': the opposite of ~''.
-Sellability. The ease with which one can buy or sell an [[asset]].  So, a [[US T-Bill]] is very “[[liquid]]” — you can buy or sell any number in the blink of an eye of a keystroke on your Bloomberg terminal; a power station in the lawless mountainous badlands of Central Asia is very ''illiquid'' — it may take three years of [[due diligence]], all kinds of legal, regulatory and accounting engineering and the conveyance of a few bags of cash in brown paper bags to local gentlemen in Kalashnikov-equipped Hiluxes.
+Sellability. The ease with which one can buy or sell an [[asset]] and therefore convert it into cash, being the essence of liquidity.
+So, a [[US T-Bill]] is very “[[liquid]]” — you can buy or sell any number in the blink of an eye of a keystroke on your Bloomberg terminal; a power station in the lawless mountainous badlands of Central Asia is very ''illiquid'' — it may take three years of [[due diligence]], all kinds of legal, regulatory and accounting engineering and the conveyance of a few bags of cash in brown paper bags to local gentlemen in Kalashnikov-equipped Hiluxes.
 ===[[Illiquidity]]===