Liquidity
📈 Investing
Quick Definition
Liquidity refers to how quickly and easily an asset can be converted into cash without significantly affecting its price.
Examples
- 1Converting stocks into cash through a brokerage account.
- 2Withdrawing funds from a savings account.
- 3Selling a house, which may take longer and be less predictable in terms of pricing compared to more liquid assets like stocks.
Tags
liquidityassetscashfinanceinvestingmarkets
Quick Info
Category:Investing
Difficulty:intermediate
Last Updated:6/19/2025