• FlowVoid@lemmy.world
    link
    fedilink
    English
    arrow-up
    4
    arrow-down
    1
    ·
    edit-2
    8 months ago

    No, a liquid asset is one that can be sold quickly for its full market value.

    For example, if you have stocks worth $100K, you can quickly convert them to $100K in cash. Whereas real estate is not liquid, because you usually cannot quickly convert a house worth $100K into cash.

    • aesthelete@lemmy.world
      link
      fedilink
      arrow-up
      3
      ·
      edit-2
      8 months ago

      Some people make a distinction between “liquid assets” and “near-liquid assets” and would classify something like a money market account (which also does grow in value as many liquid assets do) as a liquid asset, and maybe some forms of stock as near-liquid assets…but I’m splitting hairs.

      Ultimately, you’re right…downvotes be damned.