The ability to quickly turn an asset into cash. For example, $10,000 in a savings account is very liquid. If you need to access the money quickly, you can simply go to the bank and withdraw the money. However, a $10,000 rare coins collection is illiquid. If you need $10,000 cash tomorrow, you may have trouble finding a buyer willing to pay $10,000 for your collection quickly and you will most likely selling the collection for less than it is worth.
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