Liquidity is an economic term that can be looked at from two not so different perspectives. Liquidity is the ability to quickly convert assets into money. The easier it is to convert an asset into money, the more liquid it is. But it can also be used to describe a high level of trading activity in a certain market (market liquidity).
When it comes to asset liquidity, there are different degrees of liquidity. Due to its nature, money is the most liquid of all assets since it can be turned into all other assets with ease. Then come short-term securities, stocks, bonds, goods and machines. The least liquid assets are real estate, land, rights and licenses.

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