#CircleIPO A security to cash without significantly affecting the market price of this asset. Simply put, it is the ease with which you can sell something you own and convert it into cash.

Key aspects of liquidity:

* High liquidity: Assets with high liquidity can be converted to cash quickly and easily. Think of cash itself, or savings in a bank account. Stocks of large, well-known companies and highly traded government bonds are generally considered liquid.

* Low liquidity: Assets with low liquidity are difficult and take longer to convert to cash without a significant loss in value. Examples include real estate, rare collectibles, specialized machinery, or shares in private companies. Selling these assets may take some time, and you may have to accept