Liquid Asset


Liquid Asset
An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally regarded in the same light as cash because their prices are relatively stable when they are sold on the open market.

For an asset to be liquid it needs an established market with enough participants to absorb the selling without materially impacting the price of the asset. There also needs to be a relative ease in the transfer of ownership and the movement of the asset. Liquid assets include most stocks, money market instruments and government bonds. The foreign exchange market is deemed to be the most liquid market in the world because trillions of dollars exchange hands each day, making it impossible for any one individual to influence the exchange rate.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Liquid asset — Asset that is easily and cheaply turned into cash notably cash itself and short term securities. The New York Times Financial Glossary * * * liquid asset liquid asset ➔ asset * * * liquid asset UK US noun [C] ► ACCOUNTING, FINANCE cash, or an… …   Financial and business terms

  • liquid asset — asset that is easily and cheaply turned into cash notably, cash itself and short term securities. Bloomberg Financial Dictionary * * * liquid asset liquid asset ➔ asset * * * liquid asset UK US noun [C] ► ACCOUNTING, FINANCE cash, or an… …   Financial and business terms

  • liquid asset — Business or personal property that can be quickly and easily converted into cash, such as stock, bank accounts, and accounts receivable. Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & Finances Category: Business Cash …   Law dictionary

  • liquid asset — noun An asset in the form of money or cash in hand, or an asset which can be quickly converted into cash without losing much value …   Wiktionary

  • liquid asset — property which may be quickly turned into cash …   English contemporary dictionary

  • Liquid Asset (label) — UK label established in 1999 specializing in trance and progressive trance.External links* [http://www.discogs.com/label/Liquid+Asset Liquid Assets at Discogs] …   Wikipedia

  • liquid asset ratio — Fin the ratio of liquid assets to total assets …   The ultimate business dictionary

  • near-liquid asset — /nɪə ˌlɪkwɪd æset/, near money /nɪə mʌni/ noun an asset which can easily be converted to cash …   Dictionary of banking and finance

  • asset — as·set / a ˌset, sət/ n [back formation from assets, singular, sufficient property to pay debts and legacies, from Anglo French asetz, from Old French asez enough] 1: the entire property of a person, business organization, or estate that is… …   Law dictionary

  • asset — anything of worth that is owned. The assets of a business are money in the bank, accounts receivable, securities held in the name of the business, property or buildings, equipment, fixtures, merchandise for sale or being made, supplies and all… …   Financial and business terms


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