Liquid Asset

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A Liquid Asset is an economic asset that that be sold rapidly and with minimal loss of value.



References

2014

  • (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Market_liquidity#OverviewRetrieved:2014-4-5.
    • A liquid asset has some or all of the following features: It can be sold rapidly, with minimal loss of value, any time within market hours. The essential characteristic of a liquid market is that there are always ready and willing buyers and sellers. Another elegant definition of liquidity is the probability that the next trade is executed at a price equal to the last one.[citation needed] It is similar to, but distinct from, market depth, which relates to the trade-off between quantity being sold and the price it can be sold for, rather than the liquidity trade-off between speed of sale and the price it can be sold for. A market may be considered both deep and liquid if there are ready and willing buyers and sellers in large quantities.