A nearly horizontal or landward-sloping portion of a beach formed by the deposition of sediment by storm waves. A beach may have no berm at all, or it may have more than one berm. A narrow man-made ledge or shelf, as along the top or bottom of a slope.
What is 'Liquidity'. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. Market liquidity refers to the extent to which a market, such as a country's stock market or a city's real estate market, allows assets to be bought and sold at stable prices. Cash is the most liquid asset, while real estate, fine art and collectibles are all relatively illiquid.
DEFINITION of 'Liquidity Preference Theory'. The idea that investors demand a premium for securities with longer maturities, which entail greater risk, because they would prefer to hold cash, which entails less risk.The more liquid an investment, the easier it is to sell quickly for its full value.Because interest rates are more volatile in the short term, the premium on short-versus medium-term securities will be greater than the premium on medium-versus long-term securities.he more liquid an investment, the easier it is to sell quickly for its full value. Because interest rates are more volatile in the short term, the premium on short-versus medium-term securities will be greater than the premium on medium-versus long-term securities.