Liquidity Glossary

Browse 12 liquidity terms defined in plain English, from the cultural dictionary of computing.

12 Liquidity Terms

Aftermarket
The market where securities trade after their initial issuance, such as the public trading that follows an IPO. In startup contexts it can also refer to...
Direct Listing
A public-market entry where existing shares begin trading without the traditional underwritten IPO structure that issues new shares at listing. It can offer...
Exit Event
A transaction or market event that provides liquidity to founders, employees, or investors, such as an acquisition, IPO, or major secondary sale. Exit events...
Exit Strategy
The plan or likely path by which investors and founders may eventually realize returns, such as acquisition, IPO, or sustained cash-generating independence. A...
Initial Public Offering
The process by which a private company first sells shares to public-market investors and becomes publicly traded. An IPO changes access to capital, disclosure...
IPO Lockup
The period after an IPO during which insiders and certain shareholders are restricted from selling shares. Lockups aim to prevent immediate sell pressure and...
Market Maker
A participant that provides continuous buy and sell quotes to support liquidity in a market. In startup-adjacent finance, market makers show up especially in...
Public Market
A market where securities can be bought and sold openly by public investors, typically through stock exchanges. For startups, the public market often...
Quick Ratio
A financial ratio used in different contexts, often either as a liquidity measure in accounting or, in SaaS, as a shorthand comparing new and expansion revenue...
Secondary Market
The market where existing shares or securities trade between holders rather than being newly issued by the company. In startup contexts, secondary markets give...
Secondary Sale
A transaction where existing shareholders sell shares to another investor instead of the company issuing new shares. Secondary sales can provide liquidity...
Working Capital
Current assets minus current liabilities, representing short-term liquidity available to operate the business. Working capital matters especially in companies...

Related Topics