Liquidity Liquidity refers to the ease with which investments can be converted to cash at their present market value. Additionally, liquidity is a condition of an investment that shows how greatly the investment price is affected by trading. An investment that is highly liquid is composed of enough units (such as shares) that many transactions can take place without greatly affecting the market price. High liquidity is associated with a high number of buyers and sellers trading investments at a high volume.
Lump-Sum Distribution A lump-sum distribution is the disbursement of the entire value of a profit-sharing plan, pension plan, annuity, or similar lump-sum account to the account owner or beneficiary. Lump-sum distributions may be rolled over into another tax-deferred account.