Marketable equity securities (stocks): An investment of shares of common stock and most preferred stock which can be bought, sold, or traded on public exchanges.Money Market Assets: A mutual fund that’s designed to be low-risk, liquid, and a short-term investment.Cash: Any amount in your checking and savings account or any cash you have on hand.9 Examples of Liquid AssetsĬash is king and if you need to liquidate assets to mitigate or settle any liabilities, these assets below can do just that. To also ensure that the asset is liquid, the transfer must be easily facilitated as well. As stated before, there must be a large market and demand for that particular asset to be sold to interested parties. However, in order to determine if an asset qualifies as liquid, there are several factors that must be present. This is also known as a cash equivalent because the owner is confident that their possession can be exchanged for cash in a short period of time. Even though your particular asset may not be in the form of cash, it’s still regarded as such because it can quickly be converted into cash. When speaking about liquidity, cash will always be king.

Liquid assets are possessions that an individual owns that can be converted into cash within a short period of time. In this article, we will cover the importance of liquid assets and help you differentiate liquid and nonliquid assets so you can better understand your financial situation.

Liquid assets are very important to individuals and businesses because they are the first source utilized to meet any payment obligation. This type of asset is crucial to have, simply because this can mitigate or settle any liabilities that you may encounter in a short period of time. Lastly, this asset must also be easily transferable. First, there must be an established market with a large number of interested parties ready to buy. However, there are various factors that must be considered before an asset is considered liquid. This particular type of asset is usually regarded as cash, due to the fact that its value will be the same when sold. A liquid asset is anything that you currently have in your checking and savings account or any possessions that you own that can easily be converted to cash within a short period of time.

Definition of liquid assets