#Liquidity101 Liquidity is a characteristic of any asset that indicates how quickly it can be sold or otherwise converted into cash without the need to offer a discount to attract buyers. When an asset is easily sold at the current price, it is considered liquid, and when it is difficult to sell even at a discount, it is less liquid.

The term 'liquidity' is used in the financial industry, for example by investors in the stock market or economists studying the assets of a specific company.