An asset that can be converted into cash, easily and quickly (i.e., in a relatively short period of time and without incurring hefty transaction costs in conversion process. In essence, holing such an asset is deemed equivalent to holing cash. Examples include securities issued by creditworthy governments (say U.S T-bills). It also may refer to an asset such as a property or equity holdings that has a realized cash value equivalent to a specific amount of money.
Financial Analysis
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