Liquidity refers to the ease with which an asset or security can be converted into ready cash without affecting its market price. Liquidity refers to the ease with which a security or asset can be converted into cash. A truly liquid asset can be converted into cash.
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Liquidity is a concept in economics involving the convertibility of assets and obligations. Look up liquidity in wiktionary, the free dictionary. In financial markets, liquidity refers to how quickly an investment can be sold without negatively impacting its price.
