Liquid assets are assets that can be converted into cash quickly and with minimal impact on their value. They include cash, listed shares, exchange-traded funds (ETFs), and other easily tradable financial instruments. Investors may hold liquid assets to meet short-term financial needs or take advantage of investment opportunities. The level of liquidity can influence an asset's attractiveness and ease of trading. Maintaining a balance between liquid and long-term assets is an important part of portfolio management.
