Liquidity
📈 Investing
intermediate

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