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Liquid Asset

Liquid Asset Definition

Liquid Asset is an asset that can quickly be converted into cash with minimal impact to the price received. Liquid assets are checking accounts, savings accounts, money market accounts, foreign currencies and short-term securities.


Additional meaning of Liquid Asset:

A liquid asset needs a market with enough participants to absorb the selling without a significant impact on the price of the asset. Another requirement is that the ownership of the asset needs to be easily transferable.


RELATED TERMS
Liquid







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