1. The ability to buy or sell securities quickly and easily without substantially affecting the asset's price. Large volume, blue-chip stocks like the banks are highly liquid securities. Shares in small companies with low volume activity are not considered liquid. High-level liquidity is considered a good feature for a security or a commodity. 2. Liquidity also refers to the ability of investors to convert securities into cash. Examples of liquid accounts include bank chequing accounts, passbook accounts, investment certificates, and treasury bills.
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