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Assets that can be converted into cash are called liquid. Stocksand bonds are liquid assets. Collectables like art, stamp and coins are less liquid, in comparison to, cash. Real estate is least liquid as it can take months to sell it.
Financial liquidity of a firm refers to the ability of the company to use its assets to meet the short-term liabilities.
Market liquidity allows the asset to be traded easily and quickly as desired.
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