![]() ![]() Stocks: The publicly traded stocks are considered liquid assets as the individual can receive cash within a few days after he has sold them.Bonds: Many types of trading bonds are said to be relatively liquid investments and can be held till their maturity date.However, they also come with strict withdrawal restrictions and the individual would be required to pay a penalty if he wants to access the money in this before the maturity date. Certificates of deposit: These are the liquid assets that earn an individual a higher annual percentage yield (APYs) than the savings or checking accounts.Hence, a business owner or an individual can easily sell and convert them into cash even before they get mature. Treasury bills and treasury bonds: These are considered to be highly stable liquid investments which are backed by the credit of the United States government.However, if the individual has deposited his gold in a bank account for safety reasons, it might not be easily accessible in dire times of need. For instance, gold can be sold to the jewellers or business owners involved in selling them through their shops. Precious metals: Precious metals can be considered liquid assets and can be exchanged for cash via the dealers.These are usually less liquid than other examples of liquid assets such as ETFs and stocks, and the individual gets proceeds from the sale on the next business day. Mutual funds: These provide easy diversification but are usually traded only once a day which happens when the market closes.It makes them easier and fairly quick to sell and is said to be less risky. Exchange-traded funds: Exchange-traded funds or ETFs are considered to be investment funds that trade like stocks on public exchanges.Investments: Certain types of investments such as certificates of deposits, stocks, bonds and money market accounts are counted as liquid assets.Money market account: It is a savings account at a credit union or bank which has a higher interest rate.Mobile payment accounts: It includes all the money that is present in your mobile payment services account such as GPay, Paytm, PayPal. ![]() ![]() Savings account: It is the all the cash present in your bank accounts.Cash: Physical bills present in your wallet.The examples of liquid assets can be stated as follows. What are examples of liquid assets?Įven if the definition of this financial term is quite simple to understand, it is always a good idea to know the term by its examples in the real world. An individual can calculate the total value of his liquid assets to know how much cash he possesses if he ever lands himself in a tough spot. They also assist in contributing to an individual’s net worth. These assets can be quickly turned into cash by retaining their market value.Īs per the subject matter experts, these assets are considered to be an important safeguard for a business owner or even an individual when he is facing financial problems and needs immediate cash. Liquid assets are those assets which can be easily converted into cash. Why are liquid assets considered to be important?Īccording to financial experts, an asset can be described as anything that has a monetary value which is clear from the examples stated above.Which investments are considered liquid assets?.We have covered the points given below on this page. Let us understand some more details about liquid assets through this blog. This implies these resources are controlled by the business owner, government or an individual with an expectation that he would get certain benefits in the future.Īccording to financial experts, the properties of assets can be stated as economic value, ownership and resource. It can be helpful to an individual, government or a corporation as it can be converted into cash. These holdings act as a resource that has an economic value. ![]() Whether it's business or personal financial status, assets play a more significant role in determining the stability of both. ![]()
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