In finance, to liquidate an asset is to sell it in return for money. A company can also be liquidated when it’s unable to pay its debts and all its contents are sold.
When investors refer to the liquidity of an asset, they are referring to how quickly it can be sold for cash. Property is not a very liquid asset as it usually takes a long time for the sale to be finalised, while company stocks and cryptocurrencies are very liquid as they can be sold almost instantly.
*Investing in Crypto assets may result in the loss of capital. Luno (Pty) Ltd is an authorised financial services provider (FSP No. 53314), and registered credit provider (NCRCP22123)
This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice; nor is it a call to trade. The information is intended as general market commentary for information purposes only. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor.
