• FlowVoid@lemmy.world
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    7 months ago

    Stocks are liquid assets. They can increase in value.

    T-bills are also liquid assets. They can also increase in value.

    Savings accounts and money market accounts are also liquid assets. They can also increase in value.

    • iknowitwheniseeit@lemmynsfw.com
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      7 months ago

      I’m pretty sure that liquid assets are things that you can spend, so cash and bank accounts. Anything that you have to sell to buy things is not a liquid asset. (Note that we are not talking about barter. I had a friend at college who traded a snake for a VW camper, neither of which would be considered a liquid asset. Even though technically you could put the snake in a giant blender…)

      • FlowVoid@lemmy.world
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        7 months ago

        No, a liquid asset is one that can be sold quickly for its full market value.

        For example, if you have stocks worth $100K, you can quickly convert them to $100K in cash. Whereas real estate is not liquid, because you usually cannot quickly convert a house worth $100K into cash.

        • aesthelete@lemmy.world
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          7 months ago

          Some people make a distinction between “liquid assets” and “near-liquid assets” and would classify something like a money market account (which also does grow in value as many liquid assets do) as a liquid asset, and maybe some forms of stock as near-liquid assets…but I’m splitting hairs.

          Ultimately, you’re right…downvotes be damned.