Liquidity

The ability to quickly buy or sell a particular security, investment, or asset in a short period of time (under one year) without causing a significant movement in its price. The essential characteristic of a liquid market is that there are ready and willing buyers and sellers at all times.

Sustainable businesses operate in ways that reduce waste and maximize economic, social, and environmental efficiency. However, the need for liquid investments or assets may detract from this efficiency because the value of these investments or assets over time may not be as high as those that are less-liquid. Nevertheless, careful balance between liquidity and maximizing economic, social, and environmental value is critical to a sustainable organization.

Comments

Post a comment

References to this Definition

Attn Bloggers: If you use this term and want to have your blog cross referenced, use the trackback URL below to ping us.
http://alayta.pair.com/milohoss/triple/mt-closed/mt-tb.cgi/1505