- An asset or possession that cannot be converted into cash quickly. Stocks and bonds are liquid assets because they are easy to sell quickly, but property is considered a non-liquid asset because there is no guarantee it will sell within a certain time period.
Related Terms and Acronyms
- Adjusted Basis — Definition,
- The amount you use to determine your profit or loss from a sale or exchange of property.
- Asset — Definition,
- Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
- Illiquid Asset — Definition,
- An asset that cannot be sold easily or in a timely manner for its full value.
- Liquid Assets — Definition,
- Cash and other property that can be converted quickly and easily into cash.
- Liquidation — Definition,
- To convert into cash.
- The practice of selling or redistributing some or all of a business's assets in order to repay debts or pay investors if the business becomes insolvent or is sold in full or in part.
- To settle the outstanding debts by selling property.
- Liquidity — Definition,
- The ability to convert assets to cash quickly, without significant losses.
- Secondary Market — Definition,
- A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.