2007-06-16 07:59:31 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Liquidity refers to the readiness of cash value out of an asset. Cash, of course, is the most liquid followed by bank accounts, cards that can provide cash and then on to things like stocks/bonds. The longer it takes to convert it to liquid cash, the more "illiquid" the asset. Dirt is usually the slowest to convert unless the real estate market is HOT.
2007-06-16 08:05:08 · answer #1 · answered by saurus3118 5 · 0⤊ 0⤋
Liquid, or more commonly liquidity, is the ability to generate cash from the asset within a very short time of needing it.
Many types of assets, such as Real Estate, are considered "illiquid" which means they cannot be quickly and easily converted into cash.
Bonds are considered illiquid, but since there is usually a lively secondary market for bonds, treasuries, etc, they are usually regarded as liquid since one can sell them quickly for cash ( of course, one could lose principal, if forced to sell at a loss ).
2007-06-16 15:13:21 · answer #2 · answered by InspectorBudget 7 · 0⤊ 0⤋
the ability to convert/sell an asset into cash in the shortest amount of time.
ie stocks are liquid because you can sell the asset instantly and get the money wired to your account from a brokerage company; ie real estate is not as liquid bc it might take you a few weeks or months to sell/convert the real estate into cash; ie checking account is extremely liquid bc the entire balance is cash
2007-06-16 16:01:04 · answer #3 · answered by will c 2 · 0⤊ 0⤋
Liquid means cash or cash equivalents - funds that can be used immediately.
2007-06-16 15:03:27 · answer #4 · answered by Scout 3 · 0⤊ 0⤋
Basically it means to have all of your assets possible in easy to get your hands on Cash and bonds.
2007-06-16 15:09:11 · answer #5 · answered by NoLifeSigns 4 · 0⤊ 0⤋
To have plenty of cash on hand or available.
2007-06-16 15:04:56 · answer #6 · answered by hottotrot1_usa 7 · 0⤊ 0⤋