liquid asset
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Liquid asset
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Liquidity
Easy convertibility into cash. A liquid asset or security can be easily bought or sold with little or no impact on price. Most methods of counting money supply include some highly liquid investments such as certificates of deposit. Liquid assets and investments are highly desirable as they may be sold to allow an investor to enter other investments as they arise. On exchanges, liquid investments usually have low bid-ask spreads. See also: Illiquid, Liquidity preference hypothesis.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Liquid asset.
Liquid assets are accounts or securities that can be easily converted to cash at little or no loss of value.
These include cash, money in bank accounts, money market mutual funds, and US Treasury bills.
Actively traded stocks, bonds, and mutual funds are liquid in the sense that they are easy to sell, but the price is not guaranteed and could be less than the amount you paid to buy the asset.
In contrast, selling fixed assets, such as real estate, usually requires time and negotiation.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
liquid asset
a monetary ASSET (such as CURRENCY) that can be used directly as a means of payment. See MONEY, MONEY-SUPPLY definitions, LIQUIDITY PREFERENCE.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
liquid asset
An asset that is cash or can be converted to cash on very short notice.The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.