GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Liquid Assets


Synonyms:cash, liquid goods, liquid property
Filed Under: financial-banking, investments
Tags: banking, investment
 

Definition of liquid assets

liquid assets
1. Assets in the form of cash or personal property that is easy to convert to cash. Real estate is an example of a liquid asset.

Related Terms and Acronyms:

  • acid-test ratio   A ratio that determines the liquidity of a company without requiring the company to sell assets or inventory.
  • asset   Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
  • collateral   Any property pledged as security for repayment of a debt.
  • illiquid asset   An asset that cannot be sold easily or in a timely manner for its full value.
  • intangible property   Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of tangible personal property.
  • liquidation   To convert into cash.
  • non-liquid asset   A possession that can't be transformed readily into cash. Stocks and bonds are liquid assets because they can be sold easily; a house is a non-liquid asset because it takes time to sell.
  • parking (prk)   A term that refers to depositing cash in a high-yield money market account until it is transferred to another account to pay bills.
  • receivership   A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.
  • solvency   To be able to meet one's financial liabilities in the short or long term.

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