Liquidity
Liquidity is the ease with which you can get your hands on cash. It is the ability to quickly turn your assets into cash without a considerable effect on the asset's price. The most liquid asset is cash, as you can easily convert it into other assets.
Physical assets, such as real estate, art, gold, silver, etc., are illiquid as you can't convert them efficiently into other assets or cash.
Discover more terms
What is alpha in investing?
Fee-only financial planner
What is a boglehead?
Monetary policy
Unemployment rate
What is an asset?