Liquidity
From Financial Literacy Wiki
Liquidity is actually the degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Usually high trading activities/high trading volume is associated with high liquidity. Assets that can be easily bought or sold, are known as liquid assets.
Money, or cash in hand, is the most liquid asset, and can be used immediately to pay debt or meeting immediate wants and needs.
A liquid asset has some or more of the following features. It can be sold rapidly, with minimal loss of value, any time within market hours. The essential characteristic of a liquid market is that there are ready and willing buyers and sellers at all times. Another definition of liquidity is the probability that the next trade is executed at a price equal to the last one. A market may be considered deeply liquid if there are ready and willing buyers and sellers in large quantities.
