In financial terms what does "Liquid" mean?

Question

In financial terms what does "Liquid" mean?

Answer 1

Basically it means cash.  the more liquid an asset the quicker it can be turned into cash, which is where the term high liquidity ratio comes from.

IE stock or inventory is more liquid than land.

Answer 2

Cold hard cash.

A person can have a ton of material things and give the impression that they are very wealthy but often times they have no liquid resourses.

Answer 3

you could be rich in houses business and assets but if you are rich in cash - its liquid.

Its not a good thing if you have zim $s but everywhere else its probably a good thing

Answer 4

Christine is spot on - when a company is liquid it has the means to convert assets into cash - or has a positive cash flow--

This is often a desirable position for a company to be in...

Answer 5

It is strictly speaking the cash you have in the bank or under your matress. It is liquid because you do not have to sell any asset first before the money is free to use.

Answer 6

Well, its something my bank manager says I am not.