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  1. Jun 27, 2024 · An example of a liquid asset is money market holdings. Money market accounts usually do not have hold restrictions or lockup periods (i.e. you are not permitted to sell holdings for a specific ...

  2. A liquid asset is cash on hand or an asset other than cash that can be quickly converted into cash at a reasonable price. In other words, a liquid asset can be quickly sold on the market without a significant loss of its value. Generally, liquid assets are traded on well-established markets with a large number of buyers and sellers.

    • Cash. Includes physical money (local and foreign currency) as well as the savings account and/or current account balances.
    • Cash equivalents. Cash equivalents are investment securities with a maturity period not exceeding a year. Examples include treasury bills, treasury bonds, certificates of deposit, and money market funds.
    • Marketable securities. Stocks, bonds, and exchange traded funds (ETFs) are examples of marketable securities with a high degree of liquidity. They can be sold easily and it usually takes just a few days to receive the cash from their sale.
    • Accounts receivable. Money owed to a business by its customers for goods and services provided makes up accounts receivable. The liquidity of accounts receivable varies.
  3. Jul 18, 2024 · Examples of liquid assets include cash, bonds, and CDs. Assets that lack liquidity require time or effort to trade or sell, like real estate or collectibles. You've probably heard the term ...

    • Henry Blodget
  4. The key characteristics of a liquid asset include its ease of conversion and ability to maintain value when sold. Liquidity, therefore, measures how quickly an asset can be turned into cash while retaining its total value.

  5. Examples of liquid assets include cash, stocks, bonds, money market funds, and government securities. These assets are easily tradable for their market value and have high levels of liquidity. Unlike illiquid assets such as real estate or art, you can easily convert liquid assets into cash without significant transaction costs.

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  7. Apr 29, 2024 · Examples. Typical examples of liquid assets include cash, savings accounts, certain marketable securities like stocks and government bonds, and money market funds. To illustrate, consider a company with a healthy balance of cash in its savings account and a portfolio of easily tradable stocks. This mix allows the company to quickly respond to ...

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