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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Liquid Market

Definition:

A market where there are lots of buyers and sellers so investors can cash their investments in quickly.

Currency markets (especially the U.S. currency and Euro markets) are very liquid. If you have a pile of one currency, it's super easy and fast to convert it into a different currency. Fortune 500 company stocks would also be a liquid market because there are usually lots of buyers for that kind of stock. If you wanted to, you could sell your stocks quickly and have cash in hand.