Market liquidity is a business, economics or investment term that refers to an asset's ability to be easily converted through an act of buying or selling without causing a significant movement in the price and with minimum loss of value.

Trading Agents and Liquidity Risk, J.Cherian, S. Mahanti and M. Subrahmanyam, Journal of Investment Management Conference Series, Forthcoming Spring 2009.

Latent Liquidity: A New Measure of Liquidity, with an Application to Corporate Bonds, S.Mahanti, A. Nashikkar, M. Subrahmanyam, G. Chacko, and G. Mallik, Journal of Financial Economics, 2008.

Latent Liquidity and Corporate Bond Yield Spreads, A. Nashikkar, M. Subrahmanyam and S.Mahanti

A Model of the Convenience Yields in On-the-Run Treasuries, J. Cherian, E. Jacquier and R. Jarrow

Editor's Text: The Surprising Bond between CAPM and the Meaning of Liquidity, Peter L. Bernstein