Liquid assets are an important part of a portfolio

You’ve probably heard the term “liquidity” thrown around when it comes to your portfolio and assets. It refers to how quickly an asset can be converted into cash.  As such, liquid assets are those that can easily be sold or traded. 

Liquidity is really a gauge of how much access an individual or business has to cash. The easier an asset — be it an investment, a collectible, or even a precious metal stored in a safe somewhere — can be “liquefied” for its cash value, the higher its liquidity. 

Published by Sam Becker in Business Insider.