fundamentals
liquidity
How easily an asset can be converted to cash without affecting its price.
Example
"Cash has the highest liquidity of any asset — it's already in its final form."
💡 Memory Tip
LIQUID-ity — liquid flows easily. High liquidity = you can easily flow the asset into cash.
Etymology
From Latin 'liquidus' meaning 'fluid, flowing' — like liquid, easily flows into cash.
Common Misspellings
liqudityliquidtyliqidityliquiidity
Related Terms
See Also
cashmarket