as a proxy for liquidity

USAGE SUMMARY

The phrase "as a proxy for liquidity" is correct and usable in written English.
It can be used in financial contexts to indicate that one variable or measure is being used as a substitute or representative for liquidity. Example: "The company's stock price often serves as a proxy for liquidity in the market, reflecting investor confidence and trading volume."

✓ Grammatically correct

Science

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

2 human-written examples

This evidence supports a model that uses SLambda as a proxy for liquidity risk and the 10-year CDS spread as a proxy for solvency risk.

Journal of Banking & Finance

In search of an alternate perspective for measuring financial constraints, Almeida et al. (2004) propose the "propensity of firms to save cash out of cash flows" (cash flow sensitivity of cash) as a proxy for liquidity constraints, because only constrained firms will manage liquidity to maximize their value.

Financial Innovation

Human-verified similar examples from authoritative sources

Similar Expressions

58 human-written examples

We include information on the number of IPOs by European (EU27) firms to directly test the liquidity hypothesis and add the aggregate amount of R&D expenditures by European businesses, scaled by GDP, as a proxy for technological opportunities.

Financial Management

In addition, we use daily relative turnover as a third proxy for liquidity, as it brings trading activity aspects to the analysis.

Business Research

This lead term serves as a proxy for the next day's market wide liquidity, and may be used as an expected value for liquidity on the following day.

Mathematics-in-Industry Case Studies

Although stock turnover could be considered as a proxy for information asymmetry, it also includes other impacts in additional to liquidity.

Frontiers of Business Research in China

The study used arrest records as a proxy for convictions.

The New York Times

An airline levy is mooted as a proxy for privilege.

The Guardian

It's using race as a proxy for crime".

The New Yorker

Here, though, he was cast as a proxy for the liberalised baby boomer, a proxy for the audience.

The Guardian - Film

So insurers are using age as a proxy for health.

The Economist

Expert writing Tips

Best practice

In technical writing, ensure that the limitations of using a proxy are acknowledged, as it may not perfectly reflect the true liquidity conditions.

Common error

Avoid presenting the proxy as a perfect substitute for actual liquidity data. Always acknowledge the potential discrepancies and limitations.

Linguistic Context

The phrase "as a proxy for liquidity" functions as a prepositional phrase that modifies a verb, indicating that something is being used as a substitute measure for liquidity. Ludwig AI examples show its use in financial and research contexts, illustrating its function in defining a relationship of representation.

Expression frequency: Rare

Frequent in

Science

40%

News & Media

30%

Formal & Business

30%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

In summary, "as a proxy for liquidity" is a phrase used to denote the substitution of a direct measure of liquidity with an indirect indicator due to measurement difficulties or data unavailability. Ludwig AI confirms that the phrase is grammatically correct and acceptable, although relatively uncommon. The phrase is typically found in formal, academic, or scientific contexts, particularly in financial analysis, where a specific measure is used to represent liquidity. When using this phrase, it is crucial to clearly define the proxy and acknowledge its limitations, preventing overstatements of its accuracy.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

serving as a liquidity indicator

This alternative explicitly states the function of liquidity and its indicator.

used to represent liquidity

Focuses on the representative nature of the measure for liquidity.

acting as a substitute for liquidity

Highlights the substitutive role of the measure.

functioning as a liquidity metric

Emphasizes the role of the measure as a quantifiable metric of liquidity.

representing liquidity

This version is a more concise way of stating the relationship.

indicative of liquidity

Highlights the indicative nature of the substitute measure.

in lieu of direct liquidity measurement

This specifies that a direct liquidity measurement is not being used.

as a gauge of liquidity

This describes the measurement as an approximate assessment of liquidity.

in place of liquidity data

This suggests the absence of actual liquidity data, thus necessitating a substitute.

a stand-in for liquidity

This alternative highlights the role as a temporary replacement.

FAQs

How can I use "as a proxy for liquidity" in a sentence?

You can use "as a proxy for liquidity" to indicate that a particular measure or variable is being used to represent the liquidity of an asset, market, or financial situation. For example, "The trading volume was used "as a proxy for" liquidity in the stock market."

What are some alternatives to "as a proxy for liquidity"?

Some alternatives include "serving as a liquidity indicator", "used to represent liquidity", or "acting as a substitute for liquidity", depending on the context.

Is it always accurate to use a proxy for liquidity?

While using a proxy can be helpful, it is essential to recognize its limitations. A proxy is an approximation and may not perfectly capture the true liquidity conditions. Therefore, it is crucial to acknowledge potential discrepancies when interpreting the results.

Which factors can be used "as a proxy for liquidity"?

Common factors include trading volume, bid-ask spread, and the number of IPOs. The suitability of each factor depends on the specific context and the assets or markets being analyzed. You can also consider alternatives "liquidity metrics".