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Each word in Sanskrit can be interpreted in myriad ways, and thus a single word can have several different and unrelated meanings.

A famous example of such "multiplicity" would be the word, "linga" -
which may be interpreted as - a Mark, Symbol, idol, gender, male organ, evidence, symptoms, et al.


Question -
Please give details about the etymology of the word "Lakṣhmī".
I'd like to know the most commonly accepted meaning of the word "Lakṣhmī".

Also, Please give other meanings of the word too, most preferably from scriptures, which clearly explain the meaning/etymology of the word and why it's so.

Further, why is Devī Lakṣhmī named so? Any specific incident related to that?

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Lakshmi has many meanings like desire, mark etc.

Nirukta 4:10 enter image description here

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    Thanks for the answer: However I'll be more interested to have a direct reference from texts too, like for the meaning of Narayana we have the following explicit verse from the Mahabharata: "आपॊ नारा इति परॊक्ताः संज्ञा नाम कृतं मया तेन नारायणॊ ऽसम्य उक्तॊ मम तद धययनं सदा" - which gives one of the meanings of the word Narayana. Something on the similar lines will be more appreciated. :))
    – peace
    Jun 12 at 6:43

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