liquidity

Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. It means how quickly you can get your hands on your cash if you sell an asset or investment. Some assets can easily be converted to cash than others when sold. For example, stocks are highly liquid because they can easily be sold with the seller receiving cash almost immediately. However, the same cannot be said for others like real estate or non-traditional assets like rare paintings or vintage cars.