Liquid assets are resources that you or your business own which can be quickly and easily converted into cash without significant loss of value.
Common examples include physical cash, money in checking or savings accounts, and marketable securities like stocks or government bonds. These assets are essential for maintaining financial stability, as they provide immediate access to funds for covering expenses, paying off debts, or handling emergencies.
The higher the proportion of liquid assets, the more financially solvent and flexible an individual or company tends to be. Liquidity is a key factor in short-term financial planning and risk management.